Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 11, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-54382 | |
Entity Registrant Name | PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 26-3842535 | |
Entity Address, Address Line One | 11766 Wilshire Blvd., Suite 1670 | |
Entity Address, City or Town | Los Angeles, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | 424 | |
Local Phone Number | 208-8100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 104,041,817 | |
Entity Central Index Key | 0001452936 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Real estate held for investment, net | $ 1,234,197 | $ 1,118,550 |
Real estate held for sale, net | 0 | 96,249 |
Real estate equity securities | 63,784 | 112,096 |
Total real estate and real estate-related investments, net | 1,297,981 | 1,326,895 |
Cash and cash equivalents | 85,368 | 84,172 |
Restricted cash | 57,325 | 21,259 |
Investments in unconsolidated entities | 72,838 | 88,256 |
Rents and other receivables, net | 21,140 | 21,795 |
Above-market leases, net | 2,364 | 2,642 |
Due from affiliate | 13 | 7,039 |
Prepaid expenses and other assets | 21,902 | 18,108 |
Goodwill | 5,436 | 13,534 |
Assets related to real estate held for sale, net | 0 | 919 |
Total assets | 1,564,367 | 1,584,619 |
Liabilities, mezzanine equity and equity | ||
Notes and bonds payable related to real estate held for investment, net | 1,042,860 | 935,073 |
Note payable related to real estate held for sale, net | 0 | 63,876 |
Notes and bonds payable, net | 1,042,860 | 998,949 |
Accounts payable and accrued liabilities | 27,236 | 23,852 |
Due to affiliates | 3,252 | 1,903 |
Below-market leases, net | 2,986 | 4,080 |
Other liabilities | 52,431 | 42,851 |
Redeemable common stock payable | 1,567 | 684 |
Restricted stock payable | 508 | 508 |
Dividends payable | 0 | 11,016 |
Liabilities related to real estate held for sale, net | 0 | 662 |
Total liabilities | 1,130,840 | 1,084,505 |
Commitments and contingencies | ||
Mezzanine equity | ||
Noncontrolling cumulative convertible redeemable preferred stock | 15,233 | 15,233 |
Redeemable noncontrolling interest | 0 | 2,822 |
Equity | ||
Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value; 1,000,000,000 shares authorized, 104,076,881 and 94,141,251 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 1,041 | 941 |
Additional paid-in capital | 909,533 | 818,440 |
Cumulative distributions and net loss | (494,998) | (347,691) |
Total Pacific Oak Strategic Opportunity REIT, Inc. stockholders’ equity | 415,576 | 471,690 |
Noncontrolling interests | 2,718 | 10,369 |
Total equity | 418,294 | 482,059 |
Total liabilities, mezzanine equity and equity | $ 1,564,367 | $ 1,584,619 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 104,076,881 | 94,141,251 |
Common stock, shares outstanding (in shares) | 104,076,881 | 94,141,251 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Rental income | $ 31,445 | $ 29,504 | $ 89,806 | $ 94,812 |
Dividend income from real estate equity securities | 2,148 | 3,189 | 5,354 | 6,693 |
Total revenues | 43,605 | 45,769 | 125,671 | 129,201 |
Expenses: | ||||
Operating, maintenance, and management | 12,342 | 10,668 | 32,560 | 31,444 |
Real estate taxes and insurance | 5,650 | 5,262 | 15,753 | 15,949 |
Hotel expenses | 5,377 | 6,483 | 17,485 | 15,715 |
Asset management fees to affiliate | 3,630 | 3,422 | 9,945 | 10,802 |
General and administrative expenses | 2,504 | 2,365 | 8,486 | 7,120 |
Foreign currency transaction (gain) loss, net | (6,001) | 2,271 | (37,100) | (568) |
Depreciation and amortization | 12,717 | 13,895 | 39,379 | 45,969 |
Interest expense | 12,976 | 10,092 | 33,319 | 30,713 |
Impairment charges on real estate | 11,942 | 10,971 | 11,942 | 10,971 |
Impairment charges on goodwill | 8,098 | 2,808 | 8,098 | 2,808 |
Total expenses | 69,235 | 68,237 | 139,867 | 170,923 |
Other (loss) income: | ||||
Equity in loss of unconsolidated entities | (3,376) | (569) | (6,130) | (144) |
Casualty-related gain | 0 | 27 | 0 | 27 |
Other interest income | 61 | 55 | 155 | 148 |
(Loss) gain on real estate equity securities | (20,722) | (2,614) | (48,312) | 12,939 |
Change in subordinated performance fee due upon termination to affiliate | 0 | (1,545) | 0 | (1,745) |
(Loss) gain on sale of real estate | (75) | 216 | 3,273 | 31,385 |
Gain on extinguishment of debt | 0 | 1,352 | 2,367 | 1,365 |
Gain from consolidation of previously unconsolidated entity | 18,742 | 0 | 18,742 | 0 |
Total other (loss) income, net | (5,370) | (3,078) | (29,905) | 43,975 |
Net (loss) income | (31,000) | (25,546) | (44,101) | 2,253 |
Net loss attributable to noncontrolling interests | 881 | 1,188 | 844 | 1,949 |
Net loss attributable to redeemable noncontrolling interest | 0 | 33 | 81 | 113 |
Preferred stock dividends | (373) | (191) | (1,091) | (644) |
Net (loss) income attributable to common stockholders | $ (30,492) | $ (24,516) | $ (44,267) | $ 3,671 |
Net (loss) income per common share, basic (in dollars per share) | $ (0.29) | $ (0.25) | $ (0.43) | $ 0.04 |
Net (loss) income per common share, diluted (in dollars per share) | $ (0.29) | $ (0.25) | $ (0.43) | $ 0.04 |
Weighted-average number of common shares outstanding, basic (in shares) | 104,180,800 | 97,659,731 | 103,351,040 | 97,879,983 |
Weighted-average number of common shares outstanding, diluted (in shares) | 104,180,800 | 97,659,731 | 103,351,040 | 97,879,983 |
Hotel revenues | ||||
Revenues: | ||||
Revenue from contract with customer | $ 9,182 | $ 12,153 | $ 27,952 | $ 24,578 |
Other operating income | ||||
Revenues: | ||||
Revenue from contract with customer | $ 830 | $ 923 | $ 2,559 | $ 3,118 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | Additional Paid-in Capital | Cumulative Distributions and Net Loss | Noncontrolling Interests |
Balance (in shares) at Dec. 31, 2020 | 98,054,582,000 | |||||
Balance at Dec. 31, 2020 | $ 519,712 | $ 506,554 | $ 979 | $ 831,295 | $ (325,720) | $ 13,158 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 1,722 | 3,671 | 3,671 | (1,949) | ||
Transfers to redeemable common stock payable, net | (2,521) | (2,521) | (2,521) | |||
Redemptions of common stock (in shares) | (3,790,180,000) | |||||
Redemptions of common stock | (29,552) | (29,552) | $ (37) | (29,515) | ||
Change in classification of restricted stock | (21,123) | (21,123) | (21,123) | |||
Noncontrolling interest contribution | 183 | 183 | ||||
Balance (in shares) at Sep. 30, 2021 | 94,264,402,000 | |||||
Balance at Sep. 30, 2021 | 510,667 | 499,275 | $ 942 | 820,382 | (322,049) | 11,392 |
Balance (in shares) at Jun. 30, 2021 | 97,906,268,000 | |||||
Balance at Jun. 30, 2021 | 545,300 | 532,740 | $ 979 | 829,294 | (297,533) | 12,560 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (25,704) | (24,516) | (24,516) | (1,188) | ||
Transfers to redeemable common stock payable, net | (1,955) | (1,955) | (1,955) | |||
Redemptions of common stock (in shares) | (3,641,866,000) | |||||
Redemptions of common stock | (28,117) | (28,117) | $ (37) | (28,080) | ||
Change in classification of restricted stock | (21,123) | (21,123) | (21,123) | |||
Noncontrolling interest contribution | 20 | 20 | ||||
Balance (in shares) at Sep. 30, 2021 | 94,264,402,000 | |||||
Balance at Sep. 30, 2021 | $ 510,667 | 499,275 | $ 942 | 820,382 | (322,049) | 11,392 |
Balance (in shares) at Dec. 31, 2021 | 94,141,251 | 94,141,251 | ||||
Balance at Dec. 31, 2021 | $ 482,059 | 471,690 | $ 941 | 818,440 | (347,691) | 10,369 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (45,111) | (44,267) | (844) | |||
Transfers to redeemable common stock payable, net | (883) | (883) | (883) | |||
Redemptions of common stock (in shares) | (485,471) | |||||
Redemptions of common stock | (4,587) | (4,587) | $ (4) | (4,583) | ||
Adjustment to value of redeemable noncontrolling interest | (3,946) | (3,946) | (3,946) | |||
Stock distribution issued (in shares) | 10,421,101 | |||||
Stock distribution issued | 0 | 0 | $ 104 | 98,990 | (99,094) | |
Acquisition of noncontrolling interest | 1,125 | 1,125 | ||||
Noncontrolling interests distributions | (10,663) | (2,431) | (2,431) | (8,232) | ||
Noncontrolling interest contribution | $ 300 | 300 | ||||
Balance (in shares) at Sep. 30, 2022 | 104,076,881 | 104,076,881 | ||||
Balance at Sep. 30, 2022 | $ 418,294 | 415,576 | $ 1,041 | 909,533 | (494,998) | 2,718 |
Balance (in shares) at Jun. 30, 2022 | 104,319,092 | |||||
Balance at Jun. 30, 2022 | 461,373 | 451,000 | $ 1,043 | 914,463 | (464,506) | 10,373 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (31,373) | (30,492) | (881) | |||
Transfers to redeemable common stock payable, net | (188) | (188) | (188) | |||
Redemptions of common stock (in shares) | (243,135) | |||||
Redemptions of common stock | (2,313) | (2,313) | $ (2) | (2,311) | ||
Stock distribution issued (in shares) | 924 | |||||
Stock distribution issued | 0 | 0 | 0 | 0 | ||
Acquisition of noncontrolling interest | 1,125 | 1,125 | ||||
Noncontrolling interests distributions | (10,630) | (2,431) | (2,431) | (8,199) | ||
Noncontrolling interest contribution | $ 300 | 300 | ||||
Balance (in shares) at Sep. 30, 2022 | 104,076,881 | 104,076,881 | ||||
Balance at Sep. 30, 2022 | $ 418,294 | $ 415,576 | $ 1,041 | $ 909,533 | $ (494,998) | $ 2,718 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | |||||
Net (loss) income | $ (31,000) | $ (25,546) | $ (44,101) | $ 2,253 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||
Change in subordinated performance fee due upon termination to affiliate | 0 | 1,545 | 0 | 1,745 | |
Impairment charges on real estate | 11,942 | 10,971 | 11,942 | 10,971 | |
Impairment charges on goodwill | 8,098 | 2,808 | 8,098 | 2,808 | |
Equity in loss of unconsolidated entities | 6,130 | 144 | |||
Depreciation and amortization | 12,717 | 13,895 | 39,379 | 45,969 | |
Loss (gain) on real estate equity securities | 20,722 | 2,614 | 48,312 | (12,939) | |
Loss (gain) on sale of real estate | 75 | (216) | (3,273) | (31,385) | |
Gain from consolidation of previously unconsolidated entity | (18,742) | 0 | (18,742) | 0 | |
Unrealized (gain) loss on interest rate caps | (1,103) | 17 | |||
Deferred rent | (1,966) | (1,529) | |||
Gain on extinguishment of debt | 0 | (1,352) | (2,367) | (1,365) | |
Amortization of above- and below-market leases, net | (762) | (1,015) | |||
Amortization of deferred financing costs and discount on bonds and notes payable | 5,953 | 4,376 | |||
Foreign currency transaction gain, net | (6,001) | 2,271 | (37,100) | (568) | |
Changes in assets and liabilities: | |||||
Rents and other receivables | 2,403 | (1,898) | |||
Prepaid expenses and other assets | (3,010) | (4,371) | |||
Accounts payable and accrued liabilities | (955) | (984) | |||
Due to affiliates | 1,201 | (726) | |||
Other liabilities | (1,379) | (190) | |||
Net cash provided by operating activities | 8,660 | 11,313 | |||
Cash Flows from Investing Activities: | |||||
Acquisitions of real estate | (6,689) | (4,107) | |||
Improvements to real estate | (16,515) | (12,923) | |||
Proceeds from sales of real estate, net | 97,933 | 194,528 | |||
Cash and restricted cash received upon consolidation of previously unconsolidated entity | 1,834 | 0 | |||
Contributions to unconsolidated entities | (23,887) | (4,769) | |||
Distributions of capital from unconsolidated entities | 569 | 0 | |||
Purchase of interest rate cap | (566) | (18) | |||
Proceeds from the sale of real estate equity securities | 0 | 14,439 | |||
Advance to affiliate | (1,201) | 0 | |||
Proceeds from advances due from affiliates | 8,227 | 0 | |||
Escrow deposits for future real estate sales | 17,000 | 0 | |||
Proceeds for future development obligations | 0 | 6,203 | |||
Funding for development obligations | (6,407) | 0 | |||
Net cash provided by investing activities | 70,298 | 193,353 | |||
Cash Flows from Financing Activities: | |||||
Proceeds from notes and bonds payable | 191,667 | 157,246 | |||
Principal payments on notes and bonds payable | (190,515) | (233,964) | |||
Payments of deferred financing costs | (4,686) | (2,745) | |||
Payments to redeem common stock | (4,587) | (29,552) | |||
Payment to redeem restricted stock | 0 | (5,656) | |||
Payment of prepaid other offering costs | 0 | (164) | |||
Payment to redeem noncontrolling interests | (6,687) | 0 | |||
Distributions paid | (11,016) | 0 | |||
Preferred dividends paid | (1,091) | (644) | |||
Noncontrolling interests distributions | (10,663) | 0 | |||
Noncontrolling interest contribution | 300 | 183 | |||
Other financing proceeds | 0 | 2,367 | |||
Net cash used in financing activities | (37,278) | (112,929) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,418) | 182 | |||
Net increase in cash, cash equivalents and restricted cash | 37,262 | 91,919 | |||
Cash, cash equivalents and restricted cash, beginning of period | 105,431 | 74,319 | $ 74,319 | ||
Cash, cash equivalents and restricted cash, end of period | $ 142,693 | $ 166,238 | $ 142,693 | $ 166,238 | $ 105,431 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATIONPacific Oak Strategic Opportunity REIT, Inc. (the “Company”) was formed on October 8, 2008 as a Maryland corporation and elected to be taxed as a real estate investment trust (“REIT”) beginning with the taxable year ended December 31, 2010. The Company conducts its business primarily through Pacific Oak SOR (BVI) Holdings, Ltd. (“Pacific Oak SOR BVI”), a private company limited by shares according to the British Virgin Islands Business Companies Act, 2004, which was incorporated on December 18, 2015 and is authorized to issue a maximum of 50,000 common shares with no par value. Upon incorporation, Pacific Oak SOR BVI issued one certificate containing 10,000 common shares with no par value to Pacific Oak Strategic Opportunity Limited Partnership (the “Operating Partnership”), a Delaware limited partnership formed on December 10, 2008. The Company is the sole general partner of, and owns a 0.1% partnership interest in, the Operating Partnership. Pacific Oak Strategic Opportunity Holdings LLC (“REIT Holdings”), a Delaware limited liability company formed on December 9, 2008, owns the remaining 99.9% interest in the Operating Partnership and is its sole limited partner. The Company is the sole member and manager of REIT Holdings. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2021. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC. Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak SOR BVI and their direct and indirect wholly owned subsidiaries, joint ventures in which the Company has a controlling interest and VIEs in which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. Liquidity The Company generally finances its real estate investments using notes payable that are typically structured as non-recourse secured mortgages with maturities of approximately three Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. In that regard, the Company reclassified held for sale activity related to dispositions in its consolidated balance sheets as of December 31, 2021. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Restricted Cash Restricted cash is comprised of escrow deposits for future real estate sales and lender impound reserve accounts on the Company’s borrowings for security deposits, property taxes, insurance, debt service obligations and capital improvements and replacements. Segments The Company operates in three reportable business segments: opportunistic real estate and real estate-related investments, residential homes, and hotel, which is how the Company’s management manages the business. In general, the Company intends to hold its investments in opportunistic real estate and real estate-related assets for capital appreciation. Traditional performance metrics of opportunistic real estate and real estate-related assets may not be meaningful as these investments are generally non-stabilized and do not provide a consistent stream of interest income or rental revenue. These investments exhibit similar long-term financial performance and have similar economic characteristics. These investments typically involve a higher degree of risk and do not provide a constant stream of ongoing cash flows. As a result, the Company’s management views opportunistic real estate and real estate-related assets as similar investments and aggregated them into one reportable business segment. The Company owns residential homes in 18 markets which are all aggregated into one reportable business segment due to the homes being stabilized, having high occupancy rates and have similar economic characteristics. Additionally, as of September 30, 2022, the Company owns one hotel which is aggregated into one reportable business segment due to the nature of the hotel business with short-term stays. See Note 10 for further details. Per Share Data The Company determines basic earnings per share and basic earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding during the period and the Company considers any participating securities, including unvested restricted stock, for purposes of applying the two-class method. The Company determines diluted earnings per share and diluted earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding combined with the incremental weighted average number of shares or units, as applicable, that would have been outstanding assuming all potentially dilutive securities were converted into shares of common stock or units, as applicable, at the earliest date possible. The noncontrolling Series A convertible redeemable preferred shares of Pacific Oak Residential Trust, Inc. (“PORT”) were not included as the shares are contingent on PORT being public. Square Footage, Occupancy and Other Measures Any references to square footage, occupancy or annualized base rent are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. Recently Adopted Accounting Pronouncements Reference Rate Reform — In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (ASC Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional relief to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Additionally, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (ASC Topic 848) , which clarifies that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The Company adopted ASC Topic 848 on September 30, 2022 and the related prospective optional expedients for its variable rate debt and related derivatives is not expected to have a material impact to the Company. There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the nine months ended September 30, 2022 that are of significance or potential significance to the Company. |
REAL ESTATE HELD FOR INVESTMENT
REAL ESTATE HELD FOR INVESTMENT | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE HELD FOR INVESTMENT | REAL ESTATE HELD FOR INVESTMENT As of September 30, 2022, the Company owned eight office properties, one office portfolio consisting of two office buildings and 14 acres of undeveloped land, encompassing, in the aggregate, approximately 3.2 million rentable square feet. As of September 30, 2022, these properties were 70% occupied. As of September 30, 2022, the Company owned one residential home portfolio consisting of 2,458 residential homes and encompassing approximately 3.5 million rental square feet. In addition, the Company owned two apartment properties, containing 609 units and encompassing approximately 0.5 million rentable square feet, which were 96% and 95% occupied, respectively, as of September 30, 2022. As of September 30, 2022, the Company also owned one hotel property with 196 rooms and three investments in undeveloped land with approximately 800 developable acres and one office/retail development property. The following table summarizes the Company’s real estate held for investment as of September 30, 2022 and December 31, 2021, respectively (in thousands): September 30, 2022 December 31, 2021 Land $ 275,715 $ 245,200 Buildings and improvements 1,062,342 954,851 Tenant origination and absorption costs 30,785 43,375 Total real estate, cost 1,368,842 1,243,426 Accumulated depreciation and amortization (134,645) (124,876) Total real estate held for investment, net $ 1,234,197 $ 1,118,550 Operating Leases Certain of the Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of September 30, 2022, the leases, excluding options to extend, apartment leases and residential homes, which have terms that are generally one year or less, had remaining terms of up to 12.9 years with a weighted-average remaining term of 3.7 years. Some of the leases have provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires a security deposit from tenants in the form of a cash deposit and/or a letter of credit. The amount required as a security deposit varies depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash and assumed in real estate acquisitions related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets totaled $6.0 million as of September 30, 2022 and December 31, 2021, respectively. During the three and nine months ended September 30, 2022, the Company recognized deferred rent from tenants of $0.5 million and $2.0 million, respectively, net of lease incentive amortization. During the three and nine months ended September 30, 2021, the Company recognized deferred rent from tenants of $0.4 million and $1.5 million, respectively, net of lease incentive amortization. As of September 30, 2022 and December 31, 2021, the cumulative deferred rent receivable balance, including unamortized lease incentive receivables, was $17.8 million and $16.3 million, respectively, and is included in rents and other receivables on the accompanying consolidated balance sheets. The cumulative deferred rent balance included $3.0 million and $3.3 million of unamortized lease incentives as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, the future minimum rental income from the Company’s properties, excluding apartment leases and residential homes, under non-cancelable operating leases was as follows (in thousands): October 1, 2022 through December 31, 2022 $ 15,105 2023 59,457 2024 54,145 2025 43,184 2026 30,074 Thereafter 72,929 $ 274,894 As of September 30, 2022, the Company’s commercial real estate properties were leased to approximately 300 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Public Administration 14 $ 7,762 12.6 % Professional, Scientific, and Technical Services 38 7,346 11.9 % Computer Systems Design and Related Services 30 7,037 11.4 % $ 22,145 35.9 % _____________________ (1) Annualized base rent represents annualized contractual base rental income as of September 30, 2022, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term. Geographic Concentration Risk As of September 30, 2022, the Company’s real estate investments in California and Georgia represented 21.9% and 10.3%, respectively, of the Company’s total assets. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the California and Georgia real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. Hotel Revenues The following table provides detailed information regarding the Company’s hotel revenues for its two hotel properties (the Springmaid Beach Resort was sold on September 1, 2022) during the three and nine months ended September 30, 2022 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Hotel revenues: Room $ 7,223 $ 9,396 $ 21,423 $ 18,508 Food, beverage and convention services 217 1,452 807 2,830 Campground 984 280 3,379 792 Other 757 1,025 2,343 2,448 Hotel revenues $ 9,181 $ 12,153 $ 27,952 $ 24,578 Contract Liabilities The following table summarizes the Company’s contract liabilities, which are comprised of hotel advanced deposits and deferred proceeds from historical and future land sales received from the buyers of the Park Highlands land sales (discussed below) and another developer for the value of land that was contributed to a master association that is consolidated by the Company, which are included in other liabilities in the accompanying consolidated balance sheets, as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Contract liability $ 23,115 $ 7,313 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 449 $ 159 Recent Real Estate Sales On January 24, 2022, the Company, through an indirect wholly owned subsidiary, sold two office buildings related to the Richardson Portfolio and containing 141,950 rentable square feet in Richardson, Texas (“Greenway Buildings”) to a purchaser unaffiliated with the Company or the Advisor (as defined in Note 7), for $11.0 million, before closing costs and credits. The carrying value of the Greenway Buildings as of the disposition date was $5.6 million, which was net of $3.2 million of accumulated depreciation and amortization. In connection with the sale of the Greenway Buildings, the Company repaid $9.1 million of the outstanding principal balance due under the mortgage loan secured by the Greenway Buildings. The Company recognized a gain on sale of $3.6 million related to the disposition of the Greenway Buildings, net of closing costs and adjustments. As a result of the sale of the Greenway Buildings, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets as of December 31, 2021. On September 1, 2022, the Company, through an indirect wholly owned subsidiary, sold the Springmaid Beach Resort to a purchaser unaffiliated with the Company or the Advisor for $91.0 million, before closing costs and credits. The carrying value of the Springmaid Beach Resort as of the disposition date was $87.2 million, which was net of $3.4 million of accumulated depreciation and amortization and $2.5 million of impairment charges. In connection with the sale of the Springmaid Beach Resort, the Company repaid $52.0 million of the outstanding principal balance due under the mortgage loan secured by the Springmaid Beach Resort and $1.3 million of the proceeds were held for contingent repairs related to the property. As a result of the sale of the Springmaid Beach Resort, certain assets and liabilities were reclassified to held for sale on the consolidated balance sheets as of December 31, 2021. Park Highlands Land Purchase and Sale Contracts The Company enters into land purchase and sale contracts to dispose of Park Highlands developed and undeveloped land. Under these contracts, the Company will receive a stated deposit from the buyer, held in escrow, in consideration for the right, but not the obligation, to purchase the land at a future point in time with predetermined terms. After a contractually specified date, the deposits are not refundable even in the event the contract terminates, at which point the Company records restricted cash and other liabilities on the consolidated balance sheets. On November 11, 2021, the Company, through an indirect wholly owned subsidiary, entered into a purchase and sale agreement, as amended, to sell 234 developable acres of undeveloped land located in North Las Vegas, Nevada, (“Park Highlands”) for gross sales proceeds of approximately $121.4 million, before closing costs and credits. The due diligence period expired on February 23, 2022 and the buyer’s deposit of $13.5 million is no longer refundable and is recognized as restricted cash on the consolidated balance sheets. This deposit is held in an escrow account and will become available once the sale is completed. Actions are required by the Company to complete the planned sale. On March 10, 2022, the Company, through an indirect wholly owned subsidiary, entered into a purchase and sale agreement, as amended, to sell 77 developable acres of Park Highlands for gross sales proceeds of approximately $52.9 million, before closing costs and credits. The due diligence period expired on May 31, 2022 and the buyer’s deposit of $3.5 million is no longer refundable and is recognized as restricted cash on the consolidated balance sheets. This deposit is held in an escrow account and will become available once the sale is completed. Actions are required by the Company to complete the planned sale. On June 22, 2022, the Company, through an indirect wholly owned subsidiary, entered into a purchase and sale agreement, to sell 67 developable acres of Park Highlands for gross sales proceeds of approximately $55.0 million, before closing costs and credits. The due diligence period expired on October 20, 2022, after which the buyer’s deposit of $3.0 million is no longer be refundable and is recognized as restricted cash on the consolidated balance sheets. This deposit is held in an escrow account and will become available once the sale is completed. Actions are required by the Company to complete the planned sale. Impairment of Real Estate During the three and nine months ended September 30, 2022, the Company recorded impairment charges on real estate in the aggregate of $11.9 million, to write down the carrying value of 210 West 31st Street by $4.4 million, a development property located in New York, New York (“210 West 31st Street”) and Oakland City Center by $5.0 million, an office property located in Oakland, California, to their estimated fair value due to a change in the projected hold period and related decrease in projected cash flows. Additionally, the Company determined that based on the amended sale price of the Springmaid Beach Resort, the book value was not recoverable and the Company wrote down the carrying value of Springmaid Beach Resort by $2.5 million. During the three and nine months ended September 30, 2021, the Company recorded impairment charges on real estate in the aggregate of $11.0 million, to write down the carrying value of 210 West 31st Street by $6.6 million and Lincoln Court by $4.4 million, an office property located in Campbell, California, to their estimated fair value due to a change in the projected hold period and related decrease in projected cash flows. PORT II Consolidation On July 1, 2022, the Company became the primary beneficiary of Pacific Oak Residential Trust II, Inc. (“PORT II”), a related party and consolidated PORT II into the Company's financial statements. As of July 1, 2022, PORT II had 588 residential homes. Refer to Note 8 for additional details on PORT II and the consolidation. The following table summarizes the components of the PORT II and the gain recognized by the Company (in thousands): PORT II's assets and liabilities, based upon fair values as determined by the Company, as follows: Assets: Real estate held for investment, net $ 135,096 Cash and cash equivalents 1,473 Restricted cash 361 Prepaid expenses and other assets 639 Total Assets 137,569 Liabilities: Notes payable, net (82,646) Accounts payable and accrued liabilities (804) Due to affiliates (147) Other liabilities (1,499) Total Liabilities (85,096) Noncontrolling interest (1,125) Elimination of the Company’s investment in PORT II (32,606) Gain from consolidation of previously unconsolidated entity $ 18,742 |
REAL ESTATE EQUITY SECURITIES
REAL ESTATE EQUITY SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE EQUITY SECURITIES | REAL ESTATE EQUITY SECURITIES The following summarizes the portion of gain and loss for the period related to real estate equity securities held during the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net (loss) gain recognized during the period on real estate equity securities $ (20,722) $ (2,614) $ (48,312) $ 12,939 Less net gain recognized during the period on real estate equity securities sold during the period — — — (225) Unrealized (loss) gain recognized during the reporting period on real estate equity securities held at the end of the period $ (20,722) $ (2,614) $ (48,312) $ 12,714 |
NOTES AND BONDS PAYABLE
NOTES AND BONDS PAYABLE | 9 Months Ended |
Sep. 30, 2022 | |
Notes and Bonds Payable [Abstract] | |
NOTES AND BONDS PAYABLE | NOTES AND BONDS PAYABLE As of September 30, 2022 and December 31, 2021, the Company’s notes and bonds payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of September 30, 2022 Book Value as of December 31, 2021 Contractual Interest Rate as of September 30, 2022 Effective Interest Rate at September 30, 2022 (1) Payment Type (2) Maturity Date (3) Richardson Portfolio Mortgage Loan $ 18,944 $ 28,470 LIBOR + 2.50% 5.64% Principal & Interest 11/1/2022 (4) Park Centre Mortgage Loan 26,104 26,185 BSBY + 1.75% 4.88% Principal & Interest 06/27/2023 1180 Raymond Mortgage Loan (5) 31,070 31,070 BSBY + 2.25% 5.38% Interest Only 12/01/2023 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures (6) 326,523 271,978 3.93% 3.93% (6) 01/31/2026 Crown Pointe Mortgage Loan 53,758 52,315 SOFR + 2.30% 4.77% Interest Only 04/01/2025 The Marq Mortgage Loan 60,998 61,874 BSBY + 1.55% 4.68% Principal & Interest 06/06/2023 Eight & Nine Corporate Centre Mortgage Loan 48,095 48,545 BSBY + 1.60% 4.73% Principal & Interest 06/08/2023 Georgia 400 Center Mortgage Loan 44,129 61,154 LIBOR + 1.55% 4.69% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,303 51,302 4.74% 4.74% Interest Only 10/01/2025 PORT Mortgage Loan 2 10,523 10,523 4.72% 4.72% Interest Only 03/01/2026 PORT MetLife Loans 153,703 60,000 3.90% 3.90% Interest Only 04/10/2026 Springmaid Beach Resort Mortgage Loan (7) 55,491 (7) (7) (7) (7) Q&C Hotel Mortgage Loan 24,815 25,000 LIBOR + 2.50% (8) 5.64% Principal & Interest 12/23/2022 Lincoln Court Mortgage Loan (5) 35,314 34,623 SOFR + 3.25% 5.72% Interest Only 08/07/2025 Lofts at NoHo Commons Mortgage Loan 71,536 74,536 SOFR + 2.18% (9) 4.65% Interest Only 09/09/2023 210 West 31st Street Mortgage Loan (5) 3,000 8,850 BSBY + 3.00% 6.13% Principal & Interest 12/16/2022 Oakland City Center Mortgage Loan (5) 89,250 96,075 BSBY + 3.00% 6.13% Principal & Interest 09/01/2023 Madison Square Mortgage Loan 17,671 17,500 4.63% 4.63% Interest Only 10/07/2024 Total Notes and Bonds Payable principal outstanding 1,066,736 1,015,491 Discount on Notes and Bonds Payable, net (10) (13,376) (8,146) Deferred financing costs, net (10,500) (8,396) Total Notes and Bonds Payable, net $ 1,042,860 $ 998,949 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2022. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2022 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at September 30, 2022, where applicable. (2) Represents the payment type required under the loan as of September 30, 2022. Certain future monthly payments due under this loan also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes and bonds payable, see five-year maturity table below. (3) Represents the initial maturity date or the maturity date as extended as of September 30, 2022; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (4) Subsequent to September 30, 2022, the Company extended the Richardson Portfolio Mortgage Loan to October 10, 2022. (5) The Company’s notes and bond’s payable are generally non-recourse. These mortgage loans have guarantees over certain balances whereby the Company would be required to make guaranteed payments in the event that the Company turned the property over to the lender. The guarantees are typically 25% of the outstanding loan balance. As of September 30, 2022, the guaranteed amount in the aggregate was $41.9 million. (6) See “Israeli Bond Financings” below. (7) The Springmaid Beach Resort Mortgage Loan was paid off in conjunction with the sale of the Springmaid Beach Resort. See Note 3 for further details. (8) The interest rate is variable at the higher of one-month LIBOR + 2.5% or 4.5%. (9) The variable rate is at the higher of one-month SOFR or 1.75%, plus 2.18%. (10) Represents the unamortized premium/discount on notes and bonds payable due to the above- and below-market interest rates when the debt was assumed. The discount/premium is amortized over the remaining life of the notes and bonds payable. During the three and nine months ended September 30, 2022, the Company incurred $13.0 million and $33.3 million, respectively, of interest expense. Included in interest expense for the three and nine months ended September 30, 2022 was $1.0 million and $2.6 million, respectively, of amortization of deferred financing costs. Included in interest expense for the three and nine months ended September 30, 2022 was $1.1 million and $3.4 million, respectively, of amortization on discount on notes and bonds payable, net. Additionally, during the three and nine months ended September 30, 2022, the Company capitalized $0.7 million and $1.7 million, respectively, of interest related to its investments in undeveloped land. During the three and nine months ended September 30, 2021, the Company incurred $10.1 million and $30.7 million, respectively, of interest expense. Included in interest expense for the three and nine months ended September 30, 2021 was $0.8 million and $2.5 million, respectively, of amortization of deferred financing costs. Included in interest expense for the three and nine months ended September 30, 2021 was $0.5 million and $1.9 million, respectively, of amortization on discount on notes and bonds payable, net. Additionally, during the three and nine months ended September 30, 2021, the Company capitalized $0.5 million and $1.6 million, respectively of interest related to its investments in undeveloped land. As of September 30, 2022 and December 31, 2021, the Company’s interest payable was $5.2 million and $6.6 million, respectively. The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of September 30, 2022 (in thousands): October 1, 2022 through December 31, 2022 $ 49,443 2023 368,500 2024 126,512 2025 249,216 2026 273,065 Thereafter — $ 1,066,736 As of November 14, 2022, the Company had a total of $383.0 million of debt obligations scheduled to mature over the next 12 months. The Company has extension options with respect to $185.4 million of the debt obligations outstanding that are scheduled to mature over the next 12 months; however, the Company cannot exercise these options if not then in compliance with certain financial covenants in the loans without making a cash payment and there is no assurance that the Company will be able to meet these requirements. All of the Company’s debt obligations are generally non-recourse, subject to certain limited guaranty payments, as outlined in the table above, except for the Company’s Series B Debentures. The Company plans to utilize available extension options or refinance the notes payable. The Company may also choose to market the properties for sale or may negotiate a turnover of the secured properties back to the related mortgage lender. The Company’s notes payable contain financial debt covenants, including minimum equity requirements and liquidity ratios. As of September 30, 2022, the Company was in compliance with all of these debt covenants with the exception that the Oakland City Center Mortgage Loan and Georgia 400 Center Mortgage Loan were not in compliance with the debt service coverage requirement. As a result of such non-compliance, the Company is required to provide a cash sweep for the Georgia 400 Center Mortgage Loan. Additionally, the Company may be required to partially pay down the Oakland City Center Mortgage Loan if the non-compliance continues through September 2023. Israeli Bond Financings On February 16, 2020, Pacific Oak SOR BVI issued 254.1 million Israeli new Shekels (approximately $74.1 million as of February 16, 2020) of Series B Debentures to Israeli investors pursuant to a public offering registered with the Israel Securities Authority. The Series B Debentures will bear interest at the rate of 3.93% per year. The Series B Debentures have principal installment payments equal to 33.33% of the face amount of the Series B Debentures on January 31st of each year from 2024 to 2026. On November 1, 2021, Pacific Oak SOR BVI issued additional Series B Debentures in the amount of 536.4 million Israeli new Shekels par value through a public offering. The public offering Series B Debentures were issued at a 2.6% discount resulting in a total consideration of 522.4 million Israeli new Shekels ($166.8 million as of November 1, 2021). On November 8, 2021, Pacific Oak SOR BVI also issued Series B Debentures in the amount of 53.6 million Israeli new Shekels par value through a private offering. The private offering Series B Debentures were issued at a 3.1% discount resulting in a total consideration of 52.0 million Israeli new Shekels ($16.7 million as of November 8, 2021). Additionally, on May 2, 2022, Pacific Oak SOR BVI issued Series B Debentures in the amount of 320.4 million Israeli new Shekels par value through a private offering. The private offering Series B Debentures were issued at a 4.0% discount, resulting in a total consideration of 307.6 million Israeli new Shekels ($95.3 million as of May 2, 2022). The additional Series B Debentures have an equal level of security, pari passu, amongst themselves and between them and the initial Series B Debentures, without any right of precedence or preference between any of them. The deed of trust that governs the Series B Debentures contain various financial covenants. As of September 30, 2022, the Company was in compliance with all of these financial debt covenants. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES The following were the face values, carrying amounts and fair values of the Company’s financial instruments as of September 30, 2022 and December 31, 2021, which carrying amounts do not approximate the fair values (in thousands): September 30, 2022 December 31, 2021 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes and bond payable $ 740,213 $ 732,676 $ 720,286 $ 743,513 $ 740,176 $ 740,347 Financial liabilities (Level 1): Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures $ 326,523 $ 310,184 $ 306,099 $ 271,978 $ 258,773 $ 274,697 Disclosure of the fair value of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. This has made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. As of September 30, 2022, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 63,784 $ 63,784 $ — $ — Asset derivative - interest rate caps $ 1,971 $ — $ 1,971 $ — Nonrecurring Basis: Impaired real estate $ 220,360 $ — $ — $ 220,360 Impaired goodwill $ 5,436 $ — $ — $ 5,436 As of September 30, 2022, two of the Company’s real estate properties were measured at their estimated fair value. 210 West 31st Street was based on a sales comparison approach as of September 30, 2022. Oakland City Center was based on an income approach with the significant unobservable inputs used in measuring the estimated fair value of this property include a discount rate of 6.50% and a terminal cap rate of 5.75%. Additionally, the Springmaid Beach Resort was measured at it’s estimated fair value based on the contractual sale price. During the three and nine months ended September 30, 2022, the Company recorded impairment charges on real estate in the aggregate of $11.9 million, to write down the carrying value of 210 West 31st Street, Oakland City Center, and the Springmaid Beach Resort. The fair value of the Company's real estate were measured using significant other observable inputs (Level 2) and significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2022, which included contractual sale price, discounted cash flows, terminal capitalization rates, and discount rates. As of September 30, 2022, the Company determined that based on the sale of the Springmaid Beach Resort and a decline in projected cash flows for Oakland City Center, it was more likely than not that the fair value of the reporting units that included Oakland City Center and Springmaid Beach Resort were less than book value. The resulting real estate impairment charge on Oakland City Center and the sale of Springmaid Beach Resort, resulted in the fair value of the reporting units to be below fair value and the entirety of the goodwill associated to the reporting units to be written off. During the three and nine months ended September 30, 2022, the Company recorded goodwill impairment charges of $8.1 million in the consolidated statement of operations. The following table summarizes the goodwill impairment activity during nine months ended September 30, 2022 (in thousands): Gross Goodwill Accumulated Impairment Net Goodwill Balance, December 31, 2021 $ 16,342 $ (2,808) $ 13,534 Impairment charges on goodwill — (8,098) (8,098) Balance, September 30, 2022 $ 16,342 $ (10,906) $ 5,436 As of December 31, 2021, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring Basis: Real estate equity securities $ 112,096 $ 112,096 $ — $ — Asset derivative - interest rate caps $ 8 $ — $ 8 $ — Nonrecurring Basis: Impaired real estate (1) $ 97,600 $ — $ — $ 97,600 Impaired goodwill (1) $ 13,534 $ — $ — $ 13,534 _____________________ (1) The fair value of these assets were assessed as of September 30, 2021. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Pacific Oak Capital Advisors, LLC As described further below, the Company has entered into agreements with certain affiliates pursuant to which they provide services to the Company. Keith D. Hall and Peter McMillan III control and indirectly own Pacific Oak Holding Group, LLC (“Pacific Oak Holding”), the Company’s sponsor since November 1, 2019. Pacific Oak Holding is the sole owner of Pacific Oak Capital Advisors, LLC (the “Advisor”), the Company’s advisor since November 1, 2019. Messrs. Hall and McMillan are also two of the Company’s executive officers and directors. Subject to certain restrictions and limitations, the business of the Company is externally managed by the Advisor pursuant to an advisory agreement (the “Advisory Agreement”). The Advisory Agreement is currently effective through November 1, 2023; however the Company or the Advisor may terminate the Advisory Agreement without cause or penalty upon providing 60 days’ written notice. The Advisor conducts the Company’s operations and manages its portfolio of real estate and other real estate-related investments. Pacific Oak Residential Advisors, LLC Effective September 1, 2022, the Company entered into an advisory agreement with Pacific Oak Residential Advisors, LLC (“PORA”) (the “PORT Advisory Agreement”) pursuant to which PORA will act as a product specialist with respect to the Company’s residential homes portfolio, held through a wholly owned subsidiary. The PORT Advisory Agreement has an initial two-year term and may be renewed for additional one-year terms. Pursuant to the PORT Advisory Agreement, the Company will pay PORA: (1) an acquisition fee equal to 1.0% of the cost of each asset which consists of the price paid for the asset plus any amounts funded or budgeted at the time of acquisition for capital expenditures; and (2) a quarterly asset management fee equal to 0.25% (1.0% annually) on the aggregate value of the Company’s residential homes portfolio assets, as determined in accordance with the Company’s valuation guidelines, as of the end of each quarter. In the case of investments made through a joint venture, the acquisition fee will be based on the Company’s proportionate share of the joint venture. For substantial assistance in connection with the sale of properties or other investments related to the Company’s residential homes portfolio, the Company also pays PORA or its affiliates 1.0% of the contract sales price with a limit to not exceed commission paid to unaffiliated third parties. In connection with the PORT Advisory Agreement, the Company amended and restated its advisory agreement with the Advisor, also effective September 1, 2022 (the “Amended Company Advisory Agreement”). Under the Amended Company Advisory Agreement, the Company will no longer pay acquisition fees, asset management fees or disposition fees to the Advisor with respect to the Company’s residential homes portfolio. The Company’s residential homes portfolio will still be considered when computing any potential incentive fees due to the Advisor under the Amended Company Advisory Agreement. DMH Realty, LLC Effective September 1, 2022, the Company entered into a property management agreement with DMH Realty, LLC (“DMH Realty”), an affiliate of PORA and the Advisor (the “PORT Property Management Agreement”) for the Company’s residential homes portfolio. The PORT Property Management Agreement has an initial two-year term and may be renewed for additional one-year terms. Pursuant to the PORT Property Management Agreement, the Company will pay DMH Realty a property management fee equal to the following: (a) 8% of Collected Rental Revenues, as defined below, up to $50.0 million per annum; (b) 7% of Collected Rental Revenues in excess of $50.0 million per annum, but less than or equal to $75.0 million per annum; and (c) 6% of Collected Rental Revenues in excess of $75.0 million per annum, “Collected Rental Revenues” means the amount of rental revenue actually collected for each property per the terms of the lease pertaining to each property (including lease breakage fees) or pursuant to any early termination buyouts, but excluding other income items, fees or revenue collected by DMH Realty, including but not limited to: application fees, insufficient funds fees, late fees, move-in fees, pet fees, and security deposits (except to the extent applied to rent per the terms of the lease pertaining to any property). Pacific Oak Capital Markets, LLC On September 9, 2022, the Company, through PORT, commenced a private offering of up to $500 million of common stock in a primary offering and up to $50 million of common stock under its distribution reinvestment plan (the “Private Offering”). PORT engaged Pacific Oak Capital Markets, LLC (“POCM”), an affiliate of the Advisor, PORA and DHM Realty, to be the dealer manager for the Private Offering, pursuant to a dealer manager agreement effective as of September 9, 2022 (the “PORT Dealer Manager Agreement”). Pursuant to the PORT Dealer Manager Agreement, with respect to Class A shares, PORT will generally pay POCM: (1) selling commissions equal to up to 6.0% of the net asset value (“NAV”) of each share sold in the primary offering, which POCM may reallow in part or in full to participating broker-dealers; (2) a dealer manager fee equal to up to 1.5% of the NAV of each share sold in the primary offering, which POCM may reallow in part or in full to participating broker-dealers; and (3) a placement agent fee equal to up to 1.5% of the NAV of each share sold in the primary offering. With respect to Class T shares, PORT will generally pay POCM: (1) selling commissions equal to up to 3.0% of the NAV of each share sold in the primary offering, which POCM may reallow in part or in full to participating broker-dealers; (2) a dealer manager fee equal to up to 0.75% of the NAV of each share sold in the primary offering, which POCM may reallow in part or in full to participating broker-dealers; and (3) a placement agent fee equal to up to 0.75% of the NAV of each share sold in the primary offering. PORT will not pay any selling commissions, dealer manager or placement agent fees in connection with the sale of shares under the distribution reinvestment plan. The Advisor is the sponsor for the Private Offering and as the sponsor, they will incur reimbursable organization and offering costs on behalf of PORT. PORT will incur an organization and offering expense fee equal to 0.5% of the NAV of each share sold in the Private Offering to help fund the reimbursement to the sponsor. Pursuant to the terms of the related party agreements, summarized below are the related-party costs incurred by the Company for the three and nine months ended September 30, 2022 and 2021, respectively, and any related amounts payable as of September 30, 2022 and December 31, 2021 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, 2022 December 31, 2021 Expensed 2022 2021 2022 2021 Asset management fees $ 3,630 $ 3,422 $ 9,945 $ 10,802 $ 3,252 $ 1,903 Property management fees 294 119 552 362 — — Disposition fees (1) 637 692 744 1,196 — — Change in subordinated performance fee due upon termination to affiliate (2) — 1,545 — 1,745 (2) (2) Capitalized Acquisition fees on real estate (3) 67 — 67 20 — — Acquisition fee on investment in unconsolidated entities — — — 45 — — $ 4,628 $ 5,778 $ 11,308 $ 14,170 $ 3,252 $ 1,903 _____________________ (1) Disposition fees with respect to real estate sold are included in the gain (loss) on sale of real estate in the accompanying consolidated statements of operations. (2) Change in estimate of fees payable to the Company’s previous advisor, KBS Capital Advisors LLC (“KBS Capital Advisors) due to the termination of the former advisory agreement with KBS Capital Advisors. (3) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred. PORT OP LP Share Redemption On June 24, 2022, the Company’s board of directors authorized and approved the redemption of the 510,816 Special Common Units of PORT OP LP, a consolidated subsidiary of the Company (“PORT OP”), representing approximately 3.20% interest, held by BPT Holdings, LLC (“BPT Holdings”), a subsidiary of the Advisor, for a price of $13.09 per unit. In July 2022, the Company redeemed the special common units of PORT OP for $6.7 million. Following the redemption, the Company owned 100% of PORT OP. Pacific Oak Opportunity Zone Fund I As of September 30, 2022, the Company’s investment balance in the Pacific Oak Opportunity Zone Fund I, LLC (“Pacific Oak Opportunity Zone Fund I”) is $26.3 million, which is included in investments in unconsolidated entities on the consolidated balance sheets. The Advisor is entitled to certain fees in connection with the fund. Pacific Oak Opportunity Zone Fund I will pay an acquisition fee equal to 1.5% of the purchase price of each asset (including any debt incurred or assumed and significant capital improvement costs budgeted as of the date of acquisition) with a purchase price less than or equal to $25.0 million plus 1.0% of the purchase price in excess of $25.0 million; a quarterly asset management fee equal to 0.25% of the total purchase price of all assets (including any debt incurred or assumed and significant capital improvement costs budgeted as of the date of acquisition) as of the end of the applicable quarter; and a financing fee equal to 0.5% of the original principal amount of any indebtedness incurred (reduced by any financing fee previously paid with respect to indebtedness being refinanced). In the case of investments made through joint ventures, the fees above will be determined based on the Company’s proportionate share of the investment. The Advisor is also entitled to certain distributions paid by the Pacific Oak Opportunity Zone Fund I after the Class A Members have received their preferred return. These fees and distributions have been waived for the Company’s investment. In addition, side letter agreements between the Advisor and Pacific Oak Opportunity Zone Fund I were executed on February 28, 2020 and stipulate that any asset management fees allocable to the Company and waived by Pacific Oak Capital Advisors for Pacific Oak Opportunity Zone Fund I will distributed to the Company. During the three and nine months ended September 30, 2022, the Company recorded $0.3 million and $0.4 million, respectively, of waived asset management fees recorded as equity in income of unconsolidated entities. During the three and nine months ended September 30, 2021, the Company recorded $0.2 million and $0.3 million, respectively, of waived asset management fees recorded as equity in income of unconsolidated entities. |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITIES | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED ENTITIES | INVESTMENT IN UNCONSOLIDATED ENTITIES As of September 30, 2022 and December 31, 2021, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties as of September 30, 2022 Investment Balance at Joint Venture Location Ownership % September 30, 2022 December 31, 2021 110 William Joint Venture 1 New York, New York 60.0% $ — $ — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 46,572 49,916 Pacific Oak Opportunity Zone Fund I 3 Various 46.0% 26,266 27,215 PORT II OP LP (1) (1) (1) (1) 11,125 $ 72,838 $ 88,256 _____________________ |
SUPPLEMENTAL CASH FLOW AND SIGN
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract] | |
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES | SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): Nine Months Ended September 30, 2022 2021 Supplemental Disclosure of Cash Flow Information: Interest paid, net of capitalized interest of $1,703 and $1,579 for the nine months ended September 30, 2022 and 2021, respectively $ 29,839 $ 29,220 Supplemental Disclosure of Significant Noncash Transactions: Assets acquired in the consolidation of previously unconsolidated entity 137,569 — Liabilities assumed in the consolidation of previously unconsolidated entity 85,096 — Accrued improvements to real estate 6,389 1,721 Redeemable common stock payable 1,567 3,385 Distributions paid to common stockholders through common stock issuances 99,094 — Accrued preferred dividends 225 225 PPP notes forgiveness 2,367 1,500 |
REPORTING SEGMENTS
REPORTING SEGMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENTS | REPORTING SEGMENTS The Company recognizes three reporting segments for the three and nine months ended September 30, 2022 and 2021: strategic opportunistic properties, residential homes and hotels. All corporate related costs are included in the strategic opportunistic properties segment to align with how financial information is presented to the chief operating decision maker. On July 1, 2022, the Company made a prospective name change to the “Single-Family Homes” segment to “Residential Homes” to reflect the Company’s acquisition of PORT II multifamily homes, see Note 3 for further details on the acquisition. On September 1, 2022, the Company made a prospective name change to the “Hotels” segment to “Hotel” to reflect the September 1, 2022 disposition of the Springmaid Beach Resort, see Note 3 for further details on the disposition. The selected financial information for reporting segments for the three and nine months ended September 30, 2022 and 2021 are as follows (in thousands): Three Months Ended September 30, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total revenues $ 25,847 $ 8,576 $ 9,182 $ 43,605 Total expenses (46,453) (10,726) (12,056) (69,235) Total other (loss) income (24,052) 18,671 11 (5,370) Net (loss) income $ (44,658) $ 16,521 $ (2,863) $ (31,000) Nine Months Ended September 30, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total revenues $ 77,599 $ 20,120 $ 27,952 $ 125,671 Total expenses (87,232) (23,735) (28,900) (139,867) Total other (loss) income (50,436) 18,149 2,382 (29,905) Net (loss) income $ (60,069) $ 14,534 $ 1,434 $ (44,101) Three Months Ended September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 28,050 $ 5,566 $ 12,153 $ 45,769 Total expenses (52,891) (6,398) (8,948) $ (68,237) Total other (loss) income (4,435) 81 1,276 $ (3,078) Net (loss) income $ (29,276) $ (751) $ 4,481 $ (25,546) Nine Months Ended September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 88,187 $ 16,436 $ 24,578 $ 129,201 Total expenses (128,418) (19,581) $ (22,924) $ (170,923) Total other income 42,527 159 $ 1,289 $ 43,975 Net income (loss) $ 2,296 $ (2,986) $ 2,943 $ 2,253 Total assets and goodwill related to the reporting segments as of September 30, 2022 and December 31, 2021 are as follows (in thousands): September 30, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total assets $ 1,174,855 $ 337,513 $ 51,999 $ 1,564,367 Goodwill (1) 4,220 — 1,216 5,436 December 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,223,122 $ 211,050 $ 150,447 $ 1,584,619 Goodwill (1) 9,489 — 4,045 13,534 _____________________ (1) During the three and nine months ended September 30, 2022, the Company recorded impairment charges on goodwill of $5.5 million and $2.6 million related to the Strategic Opportunistic Properties and Hotel segments, respectively. During the three and nine months ended September 30, 2021, the Company recorded impairment charges on goodwill of $2.8 million related to the Strategic Opportunistic Properties segment. |
PORT MEZZANINE EQUITY
PORT MEZZANINE EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
PORT MEZZANINE EQUITY | PORT MEZZANINE EQUITY The following is a reconciliation of PORT’s noncontrolling cumulative convertible redeemable preferred stock for the nine months ended September 30, 2022 and 2021 (dollars in thousands): Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2021 15,000 $ 15,134 125 $ 99 Dividends Available Upon Redemption — 1,045 — 8 Dividends Paid — (1,045) — (8) Balance, September 30, 2022 15,000 $ 15,134 125 $ 99 Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2020 15,000 $ 15,134 125 $ 99 Dividends Available Upon Redemption — 453 — — Dividends Paid — (453) — — Balance, September 30, 2021 15,000 $ 15,134 125 $ 99 On July 1, 2020, the Company acquired, through its subsidiaries, Battery Point Trust Inc. (“Battery Point”). Battery Point is a real estate investment trust that owned, at the time of acquisition, 559 single-family rental homes throughout the midwestern and southeastern United States. All of these assets are held by the Company through its subsidiary, PORT OP. The Company acquired Battery Point by acquiring all the 1,000,000 outstanding shares of Battery Point common stock from BPT Holdings. The Advisor is the Company’s external advisor and is owned and controlled by Keith D. Hall, the Company’s Chief Executive Officer and a director, and Peter M. McMillan, the Company’s President and Chairman of the Board. In exchange, BPT Holdings received 510,816 Special Common Units in PORT OP, approximately 4.5% of the outstanding common equity units, as of July 1, 2020. The value of the interests exchanged was estimated by the participants at approximately $3.0 million. The common equity units issued to BPT Holdings are redeemable after one year at the request of BPT Holdings for all or a portion of the common equity units at a redemption price equal to and in the form of cash based on the unit price of PORT OP. The following table summarizes the redeemable non-controlling interest activity related to the PORT OP equity units held by BPT Holdings for the nine months ended September 30, 2022 and 2021 (in thousands): December 31, 2021 $ 2,822 Net loss attributable to redeemable noncontrolling interest (81) Adjustment to value of redeemable noncontrolling interest (1) 3,946 Payment to redeem noncontrolling interest (6,687) September 30, 2022 $ — December 31, 2020 $ 2,968 Net loss attributable to redeemable noncontrolling interest (113) September 30, 2021 $ 2,855 _____________________ (1) On June 24, 2022, the Company’s board of directors approved the redemption of the 510,816 PORT OP Special Common Units held by BPT Holdings for a price of $13.09 per unit.and recorded at its fair value. The Company redeemed the noncontrolling interest in PORT OP in July 2022. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Obligations As of September 30, 2022, the Company’s lease and rights to a leasehold interest with respect to 210 West 31st Street, which was accounted for as a finance lease, are included in the consolidated balance sheet as follows: Right-of-use asset (included in real estate held for investment, net) (1) $ 7,281 Lease obligation (included in other liabilities) 9,424 Remaining lease term 91.3 years Discount rate 4.8 % The components of lease expense were as follows: Interest on lease obligation for the three months ended September 30, 2022 112 Interest on lease obligation for the nine months ended September 30, 2022 334 _____________________ (1) During the three and nine months ended September 30, 2022, the Company wrote down its right-of-use asset and recorded an impairment charge of $0.8 million on 210 West 31st Street. As of September 30, 2022, the Company had a leasehold interest expiring in 2114. Future minimum lease payments owed by the Company under the finance lease as of September 30, 2022 are as follows (in thousands): July 1, 2021 through December 31, 2021 $ 90 2022 360 2023 360 2024 393 2025 396 Thereafter 52,167 Total expected minimum lease obligations 53,766 Less: Amount representing interest (1) (44,342) Present value of net minimum lease payments (2) $ 9,424 _____________________ (1) Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’s incremental borrowing rate at acquisition. (2) The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets. Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide these services, the Company will be required to obtain such services from other sources. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations as of September 30, 2022. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Legal Matters |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company evaluates subsequent events up until the date the consolidated financial statements are issued. Dividends on and accretion to redemption value of Series A Redeemable Preferred Stock On October 25, 2022, the Company received notice by the holders of PORT’s Series A noncontrolling cumulative convertible redeemable preferred stock to redeem their outstanding redeemable preferred stock. If outstanding on November 4, 2022, the Series A redeemable preferred stock must be redeemed by the Company within 120 days after November 4, 2022. The Company authorized and approved the redemption of all 15,000 outstanding Series A Preferred Shares, at a price of (i) $1,120 per Series A Preferred Share, plus (ii) all accrued but unpaid dividends, through the redemption date. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, REIT Holdings, the Operating Partnership, Pacific Oak SOR BVI and their direct and indirect wholly owned subsidiaries, joint ventures in which the Company has a controlling interest and VIEs in which the Company is the primary beneficiary. All significant intercompany balances and transactions are eliminated in consolidation. |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period presentation. In that regard, the Company reclassified held for sale activity related to dispositions in its consolidated balance sheets as of December 31, 2021. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. |
Restricted Cash | Restricted cash is comprised of escrow deposits for future real estate sales and lender impound reserve accounts on the Company’s borrowings for security deposits, property taxes, insurance, debt service obligations and capital improvements and replacements. |
Segments | The Company operates in three reportable business segments: opportunistic real estate and real estate-related investments, residential homes, and hotel, which is how the Company’s management manages the business. In general, the Company intends to hold its investments in opportunistic real estate and real estate-related assets for capital appreciation. Traditional performance metrics of opportunistic real estate and real estate-related assets may not be meaningful as these investments are generally non-stabilized and do not provide a consistent stream of interest income or rental revenue. These investments exhibit similar long-term financial performance and have similar economic characteristics. These investments typically involve a higher degree of risk and do not provide a constant stream of ongoing cash flows. As a result, the Company’s management views opportunistic real estate and real estate-related assets as similar investments and aggregated them into one reportable business segment. The Company owns residential homes in 18 markets which are all aggregated into one reportable business segment due to the homes being stabilized, having high occupancy rates and have similar economic characteristics. Additionally, as of September 30, 2022, the Company owns one hotel which is aggregated into one reportable business segment due to the nature of the hotel business with short-term stays. See Note 10 for further details. |
Per Share Data | The Company determines basic earnings per share and basic earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding during the period and the Company considers any participating securities, including unvested restricted stock, for purposes of applying the two-class method. The Company determines diluted earnings per share and diluted earnings per unit based on the weighted average number of shares of common stock or units, as applicable, outstanding combined with the incremental weighted average number of shares or units, as applicable, that would have been outstanding assuming all potentially dilutive securities were converted into shares of common stock or units, as applicable, at the earliest date possible. The noncontrolling Series A convertible redeemable preferred shares of Pacific Oak Residential Trust, Inc. (“PORT”) were not included as the shares are contingent on PORT being public. |
Square Footage, Occupancy and Other Measures | Any references to square footage, occupancy or annualized base rent are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. |
Recently Adopted Accounting Guidance | Reference Rate Reform — In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (ASC Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional relief to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Additionally, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (ASC Topic 848) , which clarifies that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The Company adopted ASC Topic 848 on September 30, 2022 and the related prospective optional expedients for its variable rate debt and related derivatives is not expected to have a material impact to the Company. There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the nine months ended September 30, 2022 that are of significance or potential significance to the Company. |
Fair Value Measurement | Disclosure of the fair value of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment. This has made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different. |
REAL ESTATE HELD FOR INVESTME_2
REAL ESTATE HELD FOR INVESTMENT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Real Estate Investments | The following table summarizes the Company’s real estate held for investment as of September 30, 2022 and December 31, 2021, respectively (in thousands): September 30, 2022 December 31, 2021 Land $ 275,715 $ 245,200 Buildings and improvements 1,062,342 954,851 Tenant origination and absorption costs 30,785 43,375 Total real estate, cost 1,368,842 1,243,426 Accumulated depreciation and amortization (134,645) (124,876) Total real estate held for investment, net $ 1,234,197 $ 1,118,550 |
Schedule of Future Minimum Rental Income for Company's Properties | As of September 30, 2022, the future minimum rental income from the Company’s properties, excluding apartment leases and residential homes, under non-cancelable operating leases was as follows (in thousands): October 1, 2022 through December 31, 2022 $ 15,105 2023 59,457 2024 54,145 2025 43,184 2026 30,074 Thereafter 72,929 $ 274,894 |
Schedule of Real Estate by Industry | The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows: Industry Number of Tenants Annualized Base Rent (1) (in thousands) Percentage of Public Administration 14 $ 7,762 12.6 % Professional, Scientific, and Technical Services 38 7,346 11.9 % Computer Systems Design and Related Services 30 7,037 11.4 % $ 22,145 35.9 % |
Schedule of Hotel Revenue | The following table provides detailed information regarding the Company’s hotel revenues for its two hotel properties (the Springmaid Beach Resort was sold on September 1, 2022) during the three and nine months ended September 30, 2022 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Hotel revenues: Room $ 7,223 $ 9,396 $ 21,423 $ 18,508 Food, beverage and convention services 217 1,452 807 2,830 Campground 984 280 3,379 792 Other 757 1,025 2,343 2,448 Hotel revenues $ 9,181 $ 12,153 $ 27,952 $ 24,578 |
Schedule of Contract Liability | The following table summarizes the Company’s contract liabilities, which are comprised of hotel advanced deposits and deferred proceeds from historical and future land sales received from the buyers of the Park Highlands land sales (discussed below) and another developer for the value of land that was contributed to a master association that is consolidated by the Company, which are included in other liabilities in the accompanying consolidated balance sheets, as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 December 31, 2021 Contract liability $ 23,115 $ 7,313 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 449 $ 159 |
Schedule of Components Of Primary Beneficiary | The following table summarizes the components of the PORT II and the gain recognized by the Company (in thousands): PORT II's assets and liabilities, based upon fair values as determined by the Company, as follows: Assets: Real estate held for investment, net $ 135,096 Cash and cash equivalents 1,473 Restricted cash 361 Prepaid expenses and other assets 639 Total Assets 137,569 Liabilities: Notes payable, net (82,646) Accounts payable and accrued liabilities (804) Due to affiliates (147) Other liabilities (1,499) Total Liabilities (85,096) Noncontrolling interest (1,125) Elimination of the Company’s investment in PORT II (32,606) Gain from consolidation of previously unconsolidated entity $ 18,742 |
REAL ESTATE EQUITY SECURITIES (
REAL ESTATE EQUITY SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Gain (Loss) on Investments | The following summarizes the portion of gain and loss for the period related to real estate equity securities held during the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net (loss) gain recognized during the period on real estate equity securities $ (20,722) $ (2,614) $ (48,312) $ 12,939 Less net gain recognized during the period on real estate equity securities sold during the period — — — (225) Unrealized (loss) gain recognized during the reporting period on real estate equity securities held at the end of the period $ (20,722) $ (2,614) $ (48,312) $ 12,714 |
NOTES AND BONDS PAYABLE (Tables
NOTES AND BONDS PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes and Bonds Payable [Abstract] | |
Schedule of Long-term Debt Instruments | As of September 30, 2022 and December 31, 2021, the Company’s notes and bonds payable, including notes payable related to real estate held for sale, consisted of the following (dollars in thousands): Book Value as of September 30, 2022 Book Value as of December 31, 2021 Contractual Interest Rate as of September 30, 2022 Effective Interest Rate at September 30, 2022 (1) Payment Type (2) Maturity Date (3) Richardson Portfolio Mortgage Loan $ 18,944 $ 28,470 LIBOR + 2.50% 5.64% Principal & Interest 11/1/2022 (4) Park Centre Mortgage Loan 26,104 26,185 BSBY + 1.75% 4.88% Principal & Interest 06/27/2023 1180 Raymond Mortgage Loan (5) 31,070 31,070 BSBY + 2.25% 5.38% Interest Only 12/01/2023 Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures (6) 326,523 271,978 3.93% 3.93% (6) 01/31/2026 Crown Pointe Mortgage Loan 53,758 52,315 SOFR + 2.30% 4.77% Interest Only 04/01/2025 The Marq Mortgage Loan 60,998 61,874 BSBY + 1.55% 4.68% Principal & Interest 06/06/2023 Eight & Nine Corporate Centre Mortgage Loan 48,095 48,545 BSBY + 1.60% 4.73% Principal & Interest 06/08/2023 Georgia 400 Center Mortgage Loan 44,129 61,154 LIBOR + 1.55% 4.69% Interest Only 05/22/2023 PORT Mortgage Loan 1 51,303 51,302 4.74% 4.74% Interest Only 10/01/2025 PORT Mortgage Loan 2 10,523 10,523 4.72% 4.72% Interest Only 03/01/2026 PORT MetLife Loans 153,703 60,000 3.90% 3.90% Interest Only 04/10/2026 Springmaid Beach Resort Mortgage Loan (7) 55,491 (7) (7) (7) (7) Q&C Hotel Mortgage Loan 24,815 25,000 LIBOR + 2.50% (8) 5.64% Principal & Interest 12/23/2022 Lincoln Court Mortgage Loan (5) 35,314 34,623 SOFR + 3.25% 5.72% Interest Only 08/07/2025 Lofts at NoHo Commons Mortgage Loan 71,536 74,536 SOFR + 2.18% (9) 4.65% Interest Only 09/09/2023 210 West 31st Street Mortgage Loan (5) 3,000 8,850 BSBY + 3.00% 6.13% Principal & Interest 12/16/2022 Oakland City Center Mortgage Loan (5) 89,250 96,075 BSBY + 3.00% 6.13% Principal & Interest 09/01/2023 Madison Square Mortgage Loan 17,671 17,500 4.63% 4.63% Interest Only 10/07/2024 Total Notes and Bonds Payable principal outstanding 1,066,736 1,015,491 Discount on Notes and Bonds Payable, net (10) (13,376) (8,146) Deferred financing costs, net (10,500) (8,396) Total Notes and Bonds Payable, net $ 1,042,860 $ 998,949 _____________________ (1) Contractual interest rate represents the interest rate in effect under the loan as of September 30, 2022. Effective interest rate is calculated as the actual interest rate in effect as of September 30, 2022 (consisting of the contractual interest rate and contractual floor rates), using interest rate indices at September 30, 2022, where applicable. (2) Represents the payment type required under the loan as of September 30, 2022. Certain future monthly payments due under this loan also include amortizing principal payments. For more information of the Company’s contractual obligations under its notes and bonds payable, see five-year maturity table below. (3) Represents the initial maturity date or the maturity date as extended as of September 30, 2022; subject to certain conditions, the maturity dates of certain loans may be extended beyond the date shown. (4) Subsequent to September 30, 2022, the Company extended the Richardson Portfolio Mortgage Loan to October 10, 2022. (5) The Company’s notes and bond’s payable are generally non-recourse. These mortgage loans have guarantees over certain balances whereby the Company would be required to make guaranteed payments in the event that the Company turned the property over to the lender. The guarantees are typically 25% of the outstanding loan balance. As of September 30, 2022, the guaranteed amount in the aggregate was $41.9 million. (6) See “Israeli Bond Financings” below. (7) The Springmaid Beach Resort Mortgage Loan was paid off in conjunction with the sale of the Springmaid Beach Resort. See Note 3 for further details. (8) The interest rate is variable at the higher of one-month LIBOR + 2.5% or 4.5%. (9) The variable rate is at the higher of one-month SOFR or 1.75%, plus 2.18%. (10) Represents the unamortized premium/discount on notes and bonds payable due to the above- and below-market interest rates when the debt was assumed. The discount/premium is amortized over the remaining life of the notes and bonds payable. |
Schedule of Maturities of Long-term Debt | The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable outstanding as of September 30, 2022 (in thousands): October 1, 2022 through December 31, 2022 $ 49,443 2023 368,500 2024 126,512 2025 249,216 2026 273,065 Thereafter — $ 1,066,736 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Face Value, Carrying Amounts and Fair Value | The following were the face values, carrying amounts and fair values of the Company’s financial instruments as of September 30, 2022 and December 31, 2021, which carrying amounts do not approximate the fair values (in thousands): September 30, 2022 December 31, 2021 Face Value Carrying Amount Fair Value Face Value Carrying Amount Fair Value Financial liabilities (Level 3): Notes and bond payable $ 740,213 $ 732,676 $ 720,286 $ 743,513 $ 740,176 $ 740,347 Financial liabilities (Level 1): Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures $ 326,523 $ 310,184 $ 306,099 $ 271,978 $ 258,773 $ 274,697 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | As of September 30, 2022, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Recurring Basis: Real estate equity securities $ 63,784 $ 63,784 $ — $ — Asset derivative - interest rate caps $ 1,971 $ — $ 1,971 $ — Nonrecurring Basis: Impaired real estate $ 220,360 $ — $ — $ 220,360 Impaired goodwill $ 5,436 $ — $ — $ 5,436 As of December 31, 2021, the Company measured the following assets at fair value (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring Basis: Real estate equity securities $ 112,096 $ 112,096 $ — $ — Asset derivative - interest rate caps $ 8 $ — $ 8 $ — Nonrecurring Basis: Impaired real estate (1) $ 97,600 $ — $ — $ 97,600 Impaired goodwill (1) $ 13,534 $ — $ — $ 13,534 _____________________ (1) The fair value of these assets were assessed as of September 30, 2021. |
Schedule of Goodwill | The following table summarizes the goodwill impairment activity during nine months ended September 30, 2022 (in thousands): Gross Goodwill Accumulated Impairment Net Goodwill Balance, December 31, 2021 $ 16,342 $ (2,808) $ 13,534 Impairment charges on goodwill — (8,098) (8,098) Balance, September 30, 2022 $ 16,342 $ (10,906) $ 5,436 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Costs | Pursuant to the terms of the related party agreements, summarized below are the related-party costs incurred by the Company for the three and nine months ended September 30, 2022 and 2021, respectively, and any related amounts payable as of September 30, 2022 and December 31, 2021 (in thousands): Incurred Payable as of Three Months Ended September 30, Nine Months Ended September 30, September 30, 2022 December 31, 2021 Expensed 2022 2021 2022 2021 Asset management fees $ 3,630 $ 3,422 $ 9,945 $ 10,802 $ 3,252 $ 1,903 Property management fees 294 119 552 362 — — Disposition fees (1) 637 692 744 1,196 — — Change in subordinated performance fee due upon termination to affiliate (2) — 1,545 — 1,745 (2) (2) Capitalized Acquisition fees on real estate (3) 67 — 67 20 — — Acquisition fee on investment in unconsolidated entities — — — 45 — — $ 4,628 $ 5,778 $ 11,308 $ 14,170 $ 3,252 $ 1,903 _____________________ (1) Disposition fees with respect to real estate sold are included in the gain (loss) on sale of real estate in the accompanying consolidated statements of operations. (2) Change in estimate of fees payable to the Company’s previous advisor, KBS Capital Advisors LLC (“KBS Capital Advisors) due to the termination of the former advisory agreement with KBS Capital Advisors. (3) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred. |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Joint Ventures | As of September 30, 2022 and December 31, 2021, the Company’s investments in unconsolidated entities were composed of the following (dollars in thousands): Number of Properties as of September 30, 2022 Investment Balance at Joint Venture Location Ownership % September 30, 2022 December 31, 2021 110 William Joint Venture 1 New York, New York 60.0% $ — $ — 353 Sacramento Joint Venture 1 San Francisco, California 55.0% 46,572 49,916 Pacific Oak Opportunity Zone Fund I 3 Various 46.0% 26,266 27,215 PORT II OP LP (1) (1) (1) (1) 11,125 $ 72,838 $ 88,256 _____________________ |
SUPPLEMENTAL CASH FLOW AND SI_2
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow and Significant Noncash Transaction Disclosures [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow and significant noncash transaction disclosures were as follows (in thousands): Nine Months Ended September 30, 2022 2021 Supplemental Disclosure of Cash Flow Information: Interest paid, net of capitalized interest of $1,703 and $1,579 for the nine months ended September 30, 2022 and 2021, respectively $ 29,839 $ 29,220 Supplemental Disclosure of Significant Noncash Transactions: Assets acquired in the consolidation of previously unconsolidated entity 137,569 — Liabilities assumed in the consolidation of previously unconsolidated entity 85,096 — Accrued improvements to real estate 6,389 1,721 Redeemable common stock payable 1,567 3,385 Distributions paid to common stockholders through common stock issuances 99,094 — Accrued preferred dividends 225 225 PPP notes forgiveness 2,367 1,500 |
REPORTING SEGMENTS (Tables)
REPORTING SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The selected financial information for reporting segments for the three and nine months ended September 30, 2022 and 2021 are as follows (in thousands): Three Months Ended September 30, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total revenues $ 25,847 $ 8,576 $ 9,182 $ 43,605 Total expenses (46,453) (10,726) (12,056) (69,235) Total other (loss) income (24,052) 18,671 11 (5,370) Net (loss) income $ (44,658) $ 16,521 $ (2,863) $ (31,000) Nine Months Ended September 30, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total revenues $ 77,599 $ 20,120 $ 27,952 $ 125,671 Total expenses (87,232) (23,735) (28,900) (139,867) Total other (loss) income (50,436) 18,149 2,382 (29,905) Net (loss) income $ (60,069) $ 14,534 $ 1,434 $ (44,101) Three Months Ended September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 28,050 $ 5,566 $ 12,153 $ 45,769 Total expenses (52,891) (6,398) (8,948) $ (68,237) Total other (loss) income (4,435) 81 1,276 $ (3,078) Net (loss) income $ (29,276) $ (751) $ 4,481 $ (25,546) Nine Months Ended September 30, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total revenues $ 88,187 $ 16,436 $ 24,578 $ 129,201 Total expenses (128,418) (19,581) $ (22,924) $ (170,923) Total other income 42,527 159 $ 1,289 $ 43,975 Net income (loss) $ 2,296 $ (2,986) $ 2,943 $ 2,253 Total assets and goodwill related to the reporting segments as of September 30, 2022 and December 31, 2021 are as follows (in thousands): September 30, 2022 Strategic Opportunistic Properties Residential Homes Hotel Total Total assets $ 1,174,855 $ 337,513 $ 51,999 $ 1,564,367 Goodwill (1) 4,220 — 1,216 5,436 December 31, 2021 Strategic Opportunistic Properties Single-Family Homes Hotels Total Total assets $ 1,223,122 $ 211,050 $ 150,447 $ 1,584,619 Goodwill (1) 9,489 — 4,045 13,534 _____________________ (1) During the three and nine months ended September 30, 2022, the Company recorded impairment charges on goodwill of $5.5 million and $2.6 million related to the Strategic Opportunistic Properties and Hotel segments, respectively. During the three and nine months ended September 30, 2021, the Company recorded impairment charges on goodwill of $2.8 million related to the Strategic Opportunistic Properties segment. |
PORT MEZZANINE EQUITY (Tables)
PORT MEZZANINE EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following is a reconciliation of PORT’s noncontrolling cumulative convertible redeemable preferred stock for the nine months ended September 30, 2022 and 2021 (dollars in thousands): Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2021 15,000 $ 15,134 125 $ 99 Dividends Available Upon Redemption — 1,045 — 8 Dividends Paid — (1,045) — (8) Balance, September 30, 2022 15,000 $ 15,134 125 $ 99 Series A Preferred Stock Series B Preferred Stock Shares Amounts Shares Amounts Balance, December 31, 2020 15,000 $ 15,134 125 $ 99 Dividends Available Upon Redemption — 453 — — Dividends Paid — (453) — — Balance, September 30, 2021 15,000 $ 15,134 125 $ 99 |
Schedule of redeemable non-controlling interest activities | The following table summarizes the redeemable non-controlling interest activity related to the PORT OP equity units held by BPT Holdings for the nine months ended September 30, 2022 and 2021 (in thousands): December 31, 2021 $ 2,822 Net loss attributable to redeemable noncontrolling interest (81) Adjustment to value of redeemable noncontrolling interest (1) 3,946 Payment to redeem noncontrolling interest (6,687) September 30, 2022 $ — December 31, 2020 $ 2,968 Net loss attributable to redeemable noncontrolling interest (113) September 30, 2021 $ 2,855 _____________________ (1) On June 24, 2022, the Company’s board of directors approved the redemption of the 510,816 PORT OP Special Common Units held by BPT Holdings for a price of $13.09 per unit.and recorded at its fair value. The Company redeemed the noncontrolling interest in PORT OP in July 2022. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cost | As of September 30, 2022, the Company’s lease and rights to a leasehold interest with respect to 210 West 31st Street, which was accounted for as a finance lease, are included in the consolidated balance sheet as follows: Right-of-use asset (included in real estate held for investment, net) (1) $ 7,281 Lease obligation (included in other liabilities) 9,424 Remaining lease term 91.3 years Discount rate 4.8 % The components of lease expense were as follows: Interest on lease obligation for the three months ended September 30, 2022 112 Interest on lease obligation for the nine months ended September 30, 2022 334 _____________________ (1) During the three and nine months ended September 30, 2022, the Company wrote down its right-of-use asset and recorded an impairment charge of $0.8 million on 210 West 31st Street. |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | As of September 30, 2022, the Company had a leasehold interest expiring in 2114. Future minimum lease payments owed by the Company under the finance lease as of September 30, 2022 are as follows (in thousands): July 1, 2021 through December 31, 2021 $ 90 2022 360 2023 360 2024 393 2025 396 Thereafter 52,167 Total expected minimum lease obligations 53,766 Less: Amount representing interest (1) (44,342) Present value of net minimum lease payments (2) $ 9,424 _____________________ (1) Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’s incremental borrowing rate at acquisition. (2) The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets. |
ORGANIZATION (Details)
ORGANIZATION (Details) - shares | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 18, 2015 | |
Organizational Structure [Line Items] | |||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 104,076,881 | 94,141,251 | |
Operating Partnership | |||
Organizational Structure [Line Items] | |||
Partnership interest in Operating Partnership | 0.10% | ||
Partnership interest in the Operating Partnership and is its sole limited partner | 99.90% | ||
Pacific Oak Strategic Opportunity BVI | |||
Organizational Structure [Line Items] | |||
Common stock, shares authorized (in shares) | 50,000 | ||
Pacific Oak Strategic Opportunity BVI | Operating Partnership | |||
Organizational Structure [Line Items] | |||
Common stock, shares issued (in shares) | 10,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 USD ($) property segment | Sep. 30, 2021 segment | Sep. 30, 2022 USD ($) property | Sep. 30, 2022 USD ($) property segment | Sep. 30, 2022 USD ($) property market | Sep. 30, 2021 segment | Sep. 01, 2022 property | |
Segment Reporting Information [Line Items] | |||||||
Debt obligations, next twelve months | $ | $ 368,500 | $ 368,500 | $ 368,500 | $ 368,500 | |||
Number of reportable segments | 3 | 3 | 3 | 3 | 3 | ||
Hotel revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of real estate properties | property | 1 | 1 | 1 | 1 | 2 | ||
Mortgages | Minimum | |||||||
Segment Reporting Information [Line Items] | |||||||
Long-term debt, term | 3 years | 3 years | 3 years | 3 years | |||
Mortgages | Maximum | |||||||
Segment Reporting Information [Line Items] | |||||||
Long-term debt, term | 5 years | 5 years | 5 years | 5 years | |||
Single-Family Homes | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of reportable segments | 1 | ||||||
Single family home markets | market | 18 | ||||||
Hotels | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of reportable segments | 1 |
REAL ESTATE HELD FOR INVESTME_3
REAL ESTATE HELD FOR INVESTMENT - Additional Information (Details) ft² in Millions | Sep. 30, 2022 ft² a property unit room portfolio | Sep. 01, 2022 property |
Real Estate Properties [Line Items] | ||
Percentage of portfolio occupied | 70% | |
Office Properties | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 8 | |
Office Portfolio | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties consolidated | portfolio | 1 | |
Office Buildings, Portfolio | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties consolidated | 2 | |
Undeveloped Land, Portfolio | ||
Real Estate Properties [Line Items] | ||
Real estate area of undeveloped land | a | 14 | |
Rentable square feet | ft² | 3.2 | |
Residential Home Portfolio | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | portfolio | 1 | |
Rentable square feet | ft² | 3.5 | |
Percentage of portfolio occupied | 96% | |
Number of units in real estate property | unit | 2,458 | |
Apartment Building | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties consolidated | 2 | |
Rentable square feet | ft² | 0.5 | |
Percentage of portfolio occupied | 95% | |
Number of units in real estate property | unit | 609 | |
Hotel revenues | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 1 | 2 |
Number of Rooms | room | 196 | |
Undeveloped Land | ||
Real Estate Properties [Line Items] | ||
Real estate area of undeveloped land | a | 800 | |
Number of investments in real estate | 3 | |
Office/ Retail Property | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 1 |
REAL ESTATE HELD FOR INVESTME_4
REAL ESTATE HELD FOR INVESTMENT - Schedule of Real Estate Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 1,368,842 | $ 1,243,426 |
Accumulated depreciation and amortization | (134,645) | (124,876) |
Total real estate held for investment, net | 1,234,197 | 1,118,550 |
Land | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 275,715 | 245,200 |
Buildings and improvements | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | 1,062,342 | 954,851 |
Tenant origination and absorption costs | ||
Real Estate Properties [Line Items] | ||
Total real estate, cost | $ 30,785 | $ 43,375 |
REAL ESTATE HELD FOR INVESTME_5
REAL ESTATE HELD FOR INVESTMENT - Operating Leases, Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) tenant | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) tenant | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Operating Leased Assets [Line Items] | |||||
Security deposit liability | $ 6 | $ 6 | $ 6 | ||
Recognition of deferred revenue, net of discontinued operations | 0.5 | $ 1.5 | 2 | $ 0.4 | |
Deferred rent receivables | 17.8 | 17.8 | 16.3 | ||
Incentive to lessee | $ 3 | $ 3 | $ 3.3 | ||
Number of Tenants | tenant | 300 | 300 | |||
Maximum | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease, term | 12 years 10 months 24 days | 12 years 10 months 24 days | |||
Weighted Average | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease, term | 3 years 8 months 12 days | 3 years 8 months 12 days | |||
Apartment Building | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease, term | 1 year | 1 year |
REAL ESTATE HELD FOR INVESTME_6
REAL ESTATE HELD FOR INVESTMENT - Future Minimum Rental Income (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Real Estate [Abstract] | |
October 1, 2022 through December 31, 2022 | $ 15,105 |
2023 | 59,457 |
2024 | 54,145 |
2025 | 43,184 |
2026 | 30,074 |
Thereafter | 72,929 |
Future minimum rental income | $ 274,894 |
REAL ESTATE HELD FOR INVESTME_7
REAL ESTATE HELD FOR INVESTMENT - Highest Tenant Industry Concentrations - Greater than 10% of Annual Base Rent (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) tenant | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 300 |
Annualized Base Rent | $ | $ 22,145 |
Public Administration | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 14 |
Annualized Base Rent | $ | $ 7,762 |
Public Administration | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 12.60% |
Professional, Scientific, and Technical Services | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 38 |
Annualized Base Rent | $ | $ 7,346 |
Professional, Scientific, and Technical Services | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 11.90% |
Computer Systems Design and Related Services | |
Concentration Risk [Line Items] | |
Number of Tenants | tenant | 30 |
Annualized Base Rent | $ | $ 7,037 |
Computer Systems Design and Related Services | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 11.40% |
Industry | Industry | Revenue Benchmark | |
Concentration Risk [Line Items] | |
Percentage of Annualized Base Rent | 35.90% |
REAL ESTATE HELD FOR INVESTME_8
REAL ESTATE HELD FOR INVESTMENT - Geographic Concentration Risk (Details) - Assets, Total - Geographic Concentration Risk | 9 Months Ended |
Sep. 30, 2022 | |
California | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 21.90% |
Georgia | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.30% |
REAL ESTATE HELD FOR INVESTME_9
REAL ESTATE HELD FOR INVESTMENT - Hotel Revenue (Details) - Hotel revenues - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Revenue from contract with customer | $ 9,181 | $ 12,153 | $ 27,952 | $ 24,578 |
Room | ||||
Revenues: | ||||
Revenue from contract with customer | 7,223 | 9,396 | 21,423 | 18,508 |
Food, beverage and convention services | ||||
Revenues: | ||||
Revenue from contract with customer | 217 | 1,452 | 807 | 2,830 |
Campground | ||||
Revenues: | ||||
Revenue from contract with customer | 984 | 280 | 3,379 | 792 |
Other | ||||
Revenues: | ||||
Revenue from contract with customer | $ 757 | $ 1,025 | $ 2,343 | $ 2,448 |
REAL ESTATE HELD FOR INVESTM_10
REAL ESTATE HELD FOR INVESTMENT - Contract Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Product Liability Contingency [Line Items] | |||
Amounts included in contract liability at the beginning of the period | $ 1,966 | $ 1,529 | |
Other liabilities | |||
Product Liability Contingency [Line Items] | |||
Contract liability | 23,115 | $ 7,313 | |
Amounts included in contract liability at the beginning of the period | $ 449 | $ 159 |
REAL ESTATE HELD FOR INVESTM_11
REAL ESTATE HELD FOR INVESTMENT - Recent Real Estate Sale (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 01, 2022 USD ($) | Jan. 24, 2022 USD ($) ft² property | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Real Estate Properties [Line Items] | |||||||
Real estate held for sale, net | $ 0 | $ 0 | $ 96,249 | ||||
Accumulated depreciation and amortization | 134,645 | 134,645 | $ 124,876 | ||||
Gain on sale of real estate | $ (75) | $ 216 | $ 3,273 | $ 31,385 | |||
Greenway Buildings Mortgage Loan | |||||||
Real Estate Properties [Line Items] | |||||||
Extinguishment of debt | $ 9,100 | ||||||
Greenway Buildings | Office Properties | |||||||
Real Estate Properties [Line Items] | |||||||
Real estate held for sale, net | 5,600 | ||||||
Accumulated depreciation and amortization | $ 3,200 | ||||||
Greenway Buildings | Disposed of by Sale | Office Properties | |||||||
Real Estate Properties [Line Items] | |||||||
Number of real estate properties disposed | property | 2 | ||||||
Net rentable area (in sq feet) | ft² | 141,950 | ||||||
Sale price | $ 11,000 | ||||||
Gain on sale of real estate | $ 3,600 | ||||||
Springmaid Beach Resort | Hotel revenues | |||||||
Real Estate Properties [Line Items] | |||||||
Real estate held for sale, net | $ 87,200 | ||||||
Impairment charges | 2,500 | ||||||
Springmaid Beach Resort | Disposed of by Sale | Hotel revenues | |||||||
Real Estate Properties [Line Items] | |||||||
Sale price | 91,000 | ||||||
Accumulated depreciation and amortization | 3,400 | ||||||
Extinguishment of debt | 52,000 | ||||||
Held for contingent repairs | $ 1,300 |
REAL ESTATE HELD FOR INVESTM_12
REAL ESTATE HELD FOR INVESTMENT - Park Highland Purchase and Sale Contracts (Details) - Park Highlands - Disposed of by Sale $ in Millions | Jun. 22, 2022 USD ($) a | May 31, 2022 USD ($) | Feb. 23, 2022 USD ($) | Mar. 10, 2022 USD ($) a | Nov. 11, 2021 USD ($) a |
Real Estate Properties [Line Items] | |||||
Area of land (in acres) | a | 67 | 77 | |||
Sale price | $ 55 | $ 52.9 | |||
Deposits on real estate sales | $ 3 | $ 3.5 | |||
Undeveloped Land | |||||
Real Estate Properties [Line Items] | |||||
Area of land (in acres) | a | 234 | ||||
Sale price | $ 121.4 | ||||
Deposits on real estate sales | $ 13.5 |
REAL ESTATE HELD FOR INVESTM_13
REAL ESTATE HELD FOR INVESTMENT - Impairment of Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment charges on real estate | $ 11,942 | $ 10,971 | $ 11,942 | $ 10,971 |
210 West 31st Street | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment charges on real estate | 4,400 | 6,600 | 4,400 | 6,600 |
Oakland City Center | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment charges on real estate | $ 5,000 | 5,000 | ||
Springmaid Beach Resort | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment charges on real estate | $ 2,500 | |||
Lincoln Court | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment charges on real estate | $ 4,400 | $ 4,400 |
REAL ESTATE HELD FOR INVESTM_14
REAL ESTATE HELD FOR INVESTMENT - Components Of Primary Beneficiary (Details) $ in Thousands | Jul. 01, 2022 USD ($) property | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Assets | |||
Real estate held for investment, net | $ 1,234,197 | $ 1,118,550 | |
Cash and cash equivalents | 85,368 | 84,172 | |
Restricted cash | 57,325 | 21,259 | |
Prepaid expenses and other assets | 21,902 | 18,108 | |
Total assets | 1,564,367 | 1,584,619 | |
Liabilities, mezzanine equity and equity | |||
Accounts payable and accrued liabilities | (27,236) | (23,852) | |
Other liabilities | (52,431) | (42,851) | |
Total Liabilities | (1,130,840) | (1,084,505) | |
Noncontrolling interests | $ (2,718) | $ (10,369) | |
Variable Interest Entity, Primary Beneficiary | |||
Assets | |||
Real estate held for investment, net | $ 135,096 | ||
Cash and cash equivalents | 1,473 | ||
Restricted cash | 361 | ||
Prepaid expenses and other assets | 639 | ||
Total assets | 137,569 | ||
Liabilities, mezzanine equity and equity | |||
Notes payable, net | (82,646) | ||
Accounts payable and accrued liabilities | (804) | ||
Due to affiliates | (147) | ||
Other liabilities | (1,499) | ||
Total Liabilities | (85,096) | ||
Noncontrolling interests | (1,125) | ||
Elimination of the Company’s investment in PORT II | (32,606) | ||
Gain from consolidation of previously unconsolidated entity | $ 18,742 | ||
PORT II OP LP | Single-Family Homes | |||
Real Estate [Line Items] | |||
Number of units in real estate property | property | 588 |
REAL ESTATE EQUITY SECURITIES_2
REAL ESTATE EQUITY SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net (loss) gain recognized during the period on real estate equity securities | $ (20,722) | $ (2,614) | $ (48,312) | $ 12,939 |
Less net gain recognized during the period on real estate equity securities sold during the period | 0 | 0 | 0 | (225) |
Unrealized (loss) gain recognized during the reporting period on real estate equity securities held at the end of the period | $ (20,722) | $ (2,614) | $ (48,312) | $ 12,714 |
NOTES AND BONDS PAYABLE - Sched
NOTES AND BONDS PAYABLE - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | |||
Total Notes and Bonds Payable principal outstanding | $ 1,066,736 | $ 1,015,491 | |
Discount on Notes and Bonds Payable, net | (13,376) | (8,146) | |
Deferred financing costs, net | (10,500) | (8,396) | |
Notes and bonds payable, net | $ 1,042,860 | 998,949 | |
Oakland City Center Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Interest rate, effective percentage | 2.18% | ||
Mortgages | Richardson Portfolio Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 18,944 | 28,470 | |
Interest rate, effective percentage | 5.64% | ||
Mortgages | Richardson Portfolio Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 2.50% | ||
Mortgages | Park Centre Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 26,104 | 26,185 | |
Interest rate, effective percentage | 4.88% | ||
Mortgages | Park Centre Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 1.75% | ||
Mortgages | 1180 Raymond Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 31,070 | 31,070 | |
Interest rate, effective percentage | 5.38% | ||
Mortgages | 1180 Raymond Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 2.25% | ||
Mortgages | Crown Pointe Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 53,758 | 52,315 | |
Interest rate, effective percentage | 4.77% | ||
Guarantees as percent of outstanding loan balance | 25% | ||
Amount under guarantees | $ 41,900 | ||
Mortgages | Crown Pointe Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 2.30% | ||
Mortgages | Marquette Plaza Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 60,998 | 61,874 | |
Interest rate, effective percentage | 4.68% | ||
Mortgages | Marquette Plaza Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 1.55% | ||
Mortgages | Eight & Nine Corporate Centre Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 48,095 | 48,545 | |
Interest rate, effective percentage | 4.73% | ||
Mortgages | Eight & Nine Corporate Centre Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 1.60% | ||
Mortgages | Georgia 400 Center Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 44,129 | 61,154 | |
Interest rate, effective percentage | 4.69% | ||
Mortgages | Georgia 400 Center Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 1.55% | ||
Mortgages | PORT Mortgage Loan 1 | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 51,303 | 51,302 | |
Contractual interest rate, percentage | 4.74% | ||
Interest rate, effective percentage | 4.74% | ||
Mortgages | PORT Mortgage Loan 2 | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 10,523 | 10,523 | |
Contractual interest rate, percentage | 4.72% | ||
Interest rate, effective percentage | 4.72% | ||
Mortgages | MetLife Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 153,703 | 60,000 | |
Contractual interest rate, percentage | 3.90% | ||
Interest rate, effective percentage | 3.90% | ||
Mortgages | Springmaid Beach Resort Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | 55,491 | ||
Mortgages | Q and C Hotel Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 24,815 | 25,000 | |
Interest rate, effective percentage | 5.64% | ||
Mortgages | Q and C Hotel Mortgage Loan | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate, effective percentage | 4.50% | ||
Mortgages | Q and C Hotel Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
Contractual interest rate, percentage | 2.50% | ||
Mortgages | Lincoln Court Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 35,314 | 34,623 | |
Interest rate, effective percentage | 5.72% | ||
Mortgages | Lincoln Court Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 3.25% | ||
Mortgages | Lofts at NoHo Commons Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 71,536 | 74,536 | |
Interest rate, effective percentage | 4.65% | ||
Mortgages | Lofts at NoHo Commons Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 2.18% | ||
Mortgages | 210 West 31st Street Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 3,000 | 8,850 | |
Interest rate, effective percentage | 6.13% | ||
Mortgages | 210 West 31st Street Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Contractual interest rate, percentage | 3% | ||
Mortgages | Oakland City Center Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 89,250 | 96,075 | |
Interest rate, effective percentage | 6.13% | ||
Mortgages | Oakland City Center Mortgage Loan | One-month LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Contractual interest rate, percentage | 3% | ||
Mortgages | Madison Square Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 17,671 | 17,500 | |
Contractual interest rate, percentage | 4.63% | ||
Interest rate, effective percentage | 4.63% | ||
Bonds Payable | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | |||
Debt Instrument [Line Items] | |||
Notes payable, net | $ 326,523 | $ 271,978 | |
Contractual interest rate, percentage | 3.93% | ||
Interest rate, effective percentage | 3.93% |
NOTES AND BONDS PAYABLE - Addit
NOTES AND BONDS PAYABLE - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Nov. 14, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 12,976 | $ 10,092 | $ 33,319 | $ 30,713 | ||
Amortization of Debt Issuance Costs | 1,000 | 800 | 2,600 | 2,500 | ||
Amortization of discount on bond and notes payable | 1,100 | 1,900 | 3,400 | 500 | ||
Interest capitalized | $ 500 | 1,703 | $ 1,579 | |||
Interest payable | 5,200 | 5,200 | $ 6,600 | |||
Debt obligations, next twelve months | 368,500 | 368,500 | ||||
Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Debt obligations, next twelve months | $ 383,000 | |||||
Extension options of debt obligations outstanding that are scheduled to mature over the next 12 months | $ 185,400 | |||||
Undeveloped Land | ||||||
Debt Instrument [Line Items] | ||||||
Interest capitalized | $ 700 | $ 1,700 |
NOTES AND BONDS PAYABLE - Sch_2
NOTES AND BONDS PAYABLE - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Notes and Bonds Payable [Abstract] | |
October 1, 2022 through December 31, 2022 | $ 49,443 |
2023 | 368,500 |
2024 | 126,512 |
2025 | 249,216 |
2026 | 273,065 |
Thereafter | 0 |
Notes and bond payable outstanding | $ 1,066,736 |
NOTES AND BONDS PAYABLE - Israe
NOTES AND BONDS PAYABLE - Israeli Bond Financing (Details) - Bonds Payable - Series B Debentures ₪ in Millions, $ in Millions | May 02, 2022 ILS (₪) | May 02, 2022 USD ($) | Nov. 01, 2021 ILS (₪) | Nov. 01, 2021 USD ($) | Feb. 16, 2020 ILS (₪) | Feb. 16, 2020 USD ($) |
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | ₪ 254.1 | $ 74.1 | ||||
Contractual Interest Rate | 3.93% | 3.93% | ||||
Principal of installment payments as percent of face amount | 33.33% | |||||
Public Offering | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | ₪ 536.4 | |||||
Debt Instrument, Percent of Discount at Issuance | 2.60% | |||||
Proceeds from issuance of debt | ₪ 522.4 | $ 166.8 | ||||
Private Offering | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | ₪ 320.4 | ₪ 53.6 | ||||
Debt Instrument, Percent of Discount at Issuance | 4% | 3.10% | ||||
Proceeds from issuance of debt | ₪ 307.6 | $ 95.3 | ₪ 52 | $ 16.7 |
FAIR VALUE DISCLOSURES - Schedu
FAIR VALUE DISCLOSURES - Schedule of Face Value, Carrying Amounts and Fair Value (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Face Value | $ 740,213,000 | $ 743,513,000 |
Level 3 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 732,676,000 | 740,176,000 |
Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 720,286,000 | 740,347,000 |
Level 1 | Series B Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Face Value | 326,523,000 | 271,978,000 |
Level 1 | Carrying Amount | Series B Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | 310,184,000 | 258,773,000 |
Level 1 | Fair Value | Series B Debentures | Pacific Oak SOR (BVI) Holdings, Ltd. Series B Debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and bond payable, Value | $ 306,099,000 | $ 274,697,000 |
FAIR VALUE DISCLOSURES - Sche_2
FAIR VALUE DISCLOSURES - Schedule of Assets and Liabilities at Fair Value (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) property | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) property | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment charges on real estate | $ 11,942 | $ 10,971 | $ 11,942 | $ 10,971 | |
Impairment charges on goodwill | $ 8,098 | $ 2,808 | $ 8,098 | 2,808 | |
Number of real estate properties measured at fair value | property | 2 | 2 | |||
Goodwill | $ 5,436 | $ 5,436 | $ 13,534 | ||
Lincoln Court | Measurement Input, Discount Rate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate properties, measurement input | 6.50% | 6.50% | |||
Lincoln Court | Measurement Input Terminal Cap Rate Member | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate properties, measurement input | 5.75% | 5.75% | |||
Recurring Basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate equity securities | $ 63,784 | $ 63,784 | 112,096 | ||
Asset derivative | 1,971 | 1,971 | 8 | ||
Impairment charges on real estate | 220,360 | 97,600 | |||
Impairment charges on goodwill | 5,436 | 13,534 | |||
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate equity securities | 63,784 | 63,784 | 112,096 | ||
Asset derivative | 0 | 0 | 0 | ||
Impairment charges on real estate | 0 | 0 | |||
Impairment charges on goodwill | 0 | 0 | |||
Recurring Basis | Significant Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate equity securities | 0 | 0 | 0 | ||
Asset derivative | 1,971 | 1,971 | 8 | ||
Impairment charges on real estate | 0 | 0 | |||
Impairment charges on goodwill | 0 | 0 | |||
Recurring Basis | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate equity securities | 0 | 0 | 0 | ||
Asset derivative | $ 0 | 0 | $ 0 | ||
Impairment charges on real estate | 220,360 | 97,600 | |||
Impairment charges on goodwill | $ 5,436 | $ 13,534 |
FAIR VALUE DISCLOSURES - Sche_3
FAIR VALUE DISCLOSURES - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||||
Gross Goodwill | $ 16,342 | $ 16,342 | $ 16,342 | ||
Accumulated Impairment | (10,906) | (10,906) | (2,808) | ||
Impairment charges on goodwill | 8,098 | $ 2,808 | 8,098 | $ 2,808 | |
Net Goodwill | $ 5,436 | $ 5,436 | $ 13,534 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 01, 2022 | Jun. 24, 2022 | Nov. 01, 2019 | Jul. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | ||||||||
Period of termination of advisory agreement without cause or penalty | 60 days | |||||||
Redemptions of common stock | $ 2,313 | $ 28,117 | $ 4,587 | $ 29,552 | ||||
Tier 1 | DMH Realty, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Base fee, percent of rent collections per year | 8% | |||||||
Tier 1 | Maximum | DMH Realty, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Base fee, benchmark of rent collections per year | $ 50,000 | |||||||
Tier 2 | DMH Realty, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Base fee, percent of rent collections per year | 7% | |||||||
Tier 2 | Maximum | DMH Realty, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Base fee, benchmark of rent collections per year | $ 75,000 | |||||||
Tier 2 | Minimum | DMH Realty, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Base fee, benchmark of rent collections per year | $ 50,000 | |||||||
Tier 3 | DMH Realty, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Base fee, percent of rent collections per year | 6% | |||||||
Tier 3 | Minimum | DMH Realty, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Base fee, benchmark of rent collections per year | $ 75,000 | |||||||
Pacific Oak Residential Advisors, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Management agrement term | 2 years | |||||||
Extension term | 1 year | |||||||
Acquisition fee, percent of purchase price fee | 1% | |||||||
Asset management fee, percent | 0.25% | |||||||
Asset management fee per annum, percent | 1% | |||||||
Selling commissions fees Paid percent of sales price | 0.010 | |||||||
DMH Realty, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Management agrement term | 2 years | |||||||
Extension term | 1 year | |||||||
Pacific Oak Capital Markets | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sale of stock, consideration received on transaction | $ 500,000 | |||||||
Offering expense fee percent | 0.50% | 0.50% | ||||||
Pacific Oak Capital Markets | Common Class A | ||||||||
Related Party Transaction [Line Items] | ||||||||
Selling commissions fee , percent | 6% | 6% | ||||||
Dealer manager fee, percent | 1.50% | 1.50% | ||||||
Placement agent fee, percent | 1.50% | 1.50% | ||||||
Pacific Oak Capital Markets | Common Class T | ||||||||
Related Party Transaction [Line Items] | ||||||||
Selling commissions fee , percent | 3% | 3% | ||||||
Dealer manager fee, percent | 0.75% | 0.75% | ||||||
Placement agent fee, percent | 0.75% | 0.75% | ||||||
Pacific Oak Capital Markets | Private Offering | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sale of stock, consideration received on transaction | $ 50,000 | |||||||
PORT OP LP | BPT Holdings, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Common equity units received in transaction (in units) | 510,816 | |||||||
Share price (in dollars per share) | $ 13.09 | |||||||
Redemptions of common stock | $ 6,700 | |||||||
PORT OP LP | BPT Holdings, LLC | PORT OP | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership interest | 3.20% | |||||||
Ownership percentage | 100% |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Payable as of | $ 3,252 | $ 3,252 | $ 1,903 | ||
Pacific Oak Capital Advisors LLC | |||||
Related Party Transaction [Line Items] | |||||
Capitalized | 4,628 | $ 5,778 | 11,308 | $ 14,170 | |
Payable as of | 3,252 | 3,252 | 1,903 | ||
Pacific Oak Capital Advisors LLC | Asset management fees | |||||
Related Party Transaction [Line Items] | |||||
Expensed | 3,630 | 3,422 | 9,945 | 10,802 | |
Payable as of | 3,252 | 3,252 | 1,903 | ||
Pacific Oak Capital Advisors LLC | Property management fee | |||||
Related Party Transaction [Line Items] | |||||
Expensed | 294 | 119 | 552 | 362 | |
Payable as of | 0 | 0 | 0 | ||
Pacific Oak Capital Advisors LLC | Disposition fees | |||||
Related Party Transaction [Line Items] | |||||
Expensed | 637 | 692 | 744 | 1,196 | |
Payable as of | 0 | 0 | 0 | ||
Pacific Oak Capital Advisors LLC | Change in subordinated performance fee due upon termination to affiliate | |||||
Related Party Transaction [Line Items] | |||||
Expensed | 0 | 1,545 | 0 | 1,745 | |
Pacific Oak Capital Advisors LLC | Acquisition fees on real estate | |||||
Related Party Transaction [Line Items] | |||||
Capitalized | 67 | 0 | 67 | 20 | |
Payable as of | 0 | 0 | 0 | ||
Pacific Oak Capital Advisors LLC | Acquisition fee on investment in unconsolidated entities | |||||
Related Party Transaction [Line Items] | |||||
Capitalized | 0 | $ 0 | 0 | $ 45 | |
Payable as of | $ 0 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - In
RELATED PARTY TRANSACTIONS - Investment in Pacific Oak Opportunity Zone Fund I (Details) - Pacific Oak Opportunity Zone Fund I - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investments, fair value | $ 26.3 | $ 26.3 | ||
Acquisition fee, percent of purchase price fee | 1.50% | |||
Investment, purchase price, benchmark | $ 25 | |||
Acquisition fee of purchase price fee in excess of benchmark purchase price | 1% | |||
Asset management fee, percent | 0.25% | 0.25% | ||
Financing fee as percent of original principal amount of any indebtedness | 0.50% | 0.50% | ||
Waived asset management fees | $ 0.3 | $ 0.2 | $ 0.4 | $ 0.3 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED ENTITIES - Investments in Unconsolidated Joint Ventures (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Jul. 01, 2022 $ / shares shares | Sep. 30, 2022 USD ($) property | Jul. 29, 2022 | Dec. 31, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Investment Balance | $ 72,838 | $ 88,256 | ||
PORT II OP LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of shares purchased (in shares) | shares | 76,735 | |||
Stock repurchased during period (in dollars per share) | $ / shares | $ 14.66 | |||
PORT II OP LP | PORT II OP LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 100% | |||
110 William Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of real estate properties | property | 1 | |||
Ownership % | 60% | |||
Investment Balance | $ 0 | 0 | ||
353 Sacramento Joint Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of real estate properties | property | 1 | |||
Ownership % | 55% | |||
Investment Balance | $ 46,572 | 49,916 | ||
Pacific Oak Opportunity Zone Fund I | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of real estate properties | property | 3 | |||
Investment Balance | $ 26,266 | 27,215 | ||
Ownership % | 46% | |||
PORT II OP LP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment Balance | $ 11,125 |
SUPPLEMENTAL CASH FLOW AND SI_3
SUPPLEMENTAL CASH FLOW AND SIGNIFICANT NONCASH TRANSACTION DISCLOSURES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Supplemental Disclosure of Cash Flow Information: | ||||
Interest paid, net of capitalized interest of $1,703 and $1,579 for the nine months ended September 30, 2022 and 2021, respectively | $ 29,839 | $ 29,220 | ||
Interest capitalized | $ 500 | 1,703 | 1,579 | |
Supplemental Disclosure of Significant Noncash Transactions: | ||||
Accrued improvements to real estate | 6,389 | 1,721 | ||
Redeemable common stock payable | $ 3,385 | 1,567 | 3,385 | $ 684 |
Distributions paid to common stockholders through common stock issuances | 99,094 | 0 | ||
Accrued preferred dividends | 225 | 225 | ||
PPP notes forgiveness | 2,367 | 1,500 | ||
PORT II | ||||
Supplemental Disclosure of Significant Noncash Transactions: | ||||
Assets acquired in the consolidation of previously unconsolidated entity | 137,569 | 0 | ||
Liabilities assumed in the consolidation of previously unconsolidated entity | $ 85,096 | $ 0 |
REPORTING SEGMENTS (Details)
REPORTING SEGMENTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) segment | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) property | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) segment | Dec. 31, 2021 USD ($) | |
Segment Reporting [Abstract] | |||||||
Number of reportable segments | 3 | 3 | 3 | 3 | 3 | ||
Income Statement [Abstract] | |||||||
Total revenues | $ 43,605 | $ 45,769 | $ 125,671 | $ 129,201 | |||
Total expenses | (69,235) | (68,237) | (139,867) | (170,923) | |||
Total other (loss) income | (5,370) | (3,078) | (29,905) | 43,975 | |||
Net (loss) income | (31,000) | (25,546) | (44,101) | 2,253 | |||
Assets and Liabilities held for Sale | |||||||
Total assets | 1,564,367 | 1,564,367 | $ 1,564,367 | $ 1,564,367 | $ 1,584,619 | ||
Goodwill | 5,436 | 5,436 | 5,436 | 5,436 | 13,534 | ||
Goodwill | 13,534 | ||||||
Impairment charges on goodwill | 8,098 | 2,808 | 8,098 | 2,808 | |||
Strategic Opportunistic Properties | |||||||
Income Statement [Abstract] | |||||||
Total revenues | 25,847 | 28,050 | 77,599 | 88,187 | |||
Total expenses | (46,453) | (52,891) | (87,232) | (128,418) | |||
Total other (loss) income | (24,052) | (4,435) | (50,436) | 42,527 | |||
Net (loss) income | (44,658) | (29,276) | (60,069) | 2,296 | |||
Assets and Liabilities held for Sale | |||||||
Total assets | 1,174,855 | 1,174,855 | 1,174,855 | 1,174,855 | 1,223,122 | ||
Goodwill | 4,220 | 4,220 | 4,220 | 4,220 | |||
Goodwill | 9,489 | ||||||
Impairment charges on goodwill | 5,500 | 5,500 | |||||
Residential Homes | |||||||
Income Statement [Abstract] | |||||||
Total revenues | 8,576 | 5,566 | 20,120 | 16,436 | |||
Total expenses | (10,726) | (6,398) | (23,735) | (19,581) | |||
Total other (loss) income | 18,671 | 81 | 18,149 | 159 | |||
Net (loss) income | 16,521 | (751) | 14,534 | (2,986) | |||
Assets and Liabilities held for Sale | |||||||
Total assets | 337,513 | 337,513 | 337,513 | 337,513 | 211,050 | ||
Goodwill | 0 | 0 | 0 | $ 0 | |||
Goodwill | 0 | ||||||
Hotels | |||||||
Segment Reporting [Abstract] | |||||||
Number of reportable segments | segment | 1 | ||||||
Income Statement [Abstract] | |||||||
Total revenues | 9,182 | 12,153 | 27,952 | 24,578 | |||
Total expenses | (12,056) | (8,948) | (28,900) | (22,924) | |||
Total other (loss) income | 11 | 1,276 | 2,382 | 1,289 | |||
Net (loss) income | (2,863) | $ 4,481 | 1,434 | $ 2,943 | |||
Assets and Liabilities held for Sale | |||||||
Total assets | 51,999 | 51,999 | 51,999 | $ 51,999 | 150,447 | ||
Goodwill | 1,216 | 1,216 | $ 1,216 | $ 1,216 | |||
Goodwill | $ 4,045 | ||||||
Impairment charges on goodwill | $ 2,600 | $ 2,600 |
PORT MEZZANINE EQUITY (Details)
PORT MEZZANINE EQUITY (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Roll Forward] | ||
Balance (in shares) | 94,141,251 | |
Balance | $ 482,059 | $ 519,712 |
Balance (in shares) | 104,076,881 | |
Balance | $ 418,294 | $ 510,667 |
Preferred Stock | Preferred Class A | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Roll Forward] | ||
Balance (in shares) | 15,000 | 15,000 |
Balance | $ 15,134 | $ 15,134 |
Dividends Available Upon Redemption | 1,045 | 453 |
Dividends Paid | $ (1,045) | $ (453) |
Balance (in shares) | 15,000 | 15,000 |
Balance | $ 15,134 | $ 15,134 |
Preferred Stock | Preferred Class B | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Roll Forward] | ||
Balance (in shares) | 125 | 125 |
Balance | $ 99 | $ 99 |
Dividends Available Upon Redemption | 8 | 0 |
Dividends Paid | $ (8) | $ 0 |
Balance (in shares) | 125 | 125 |
Balance | $ 99 | $ 99 |
PORT MEZZANINE EQUITY - Additio
PORT MEZZANINE EQUITY - Additional Information (Details) $ in Millions | Jul. 01, 2020 USD ($) portfolio shares |
Battery Point | |
Class of Stock [Line Items] | |
Shares acquired during period (in shares) | 1,000,000 |
BPT Holdings, LLC | PORT OP LP | Battery Point | |
Class of Stock [Line Items] | |
Common equity units received in transaction (in units) | 510,816 |
Percent of outstanding common equity units received in transaction | 4.50% |
Common equity units received in transaction | $ | $ 3 |
Single-family Home | Battery Point | |
Class of Stock [Line Items] | |
Number of real estate properties | portfolio | 559 |
PORT MEZZANINE EQUITY - Redeema
PORT MEZZANINE EQUITY - Redeemable Non-controlling Interest Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 24, 2022 | Jul. 01, 2020 | |
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount [Roll Forward] | ||||
Beginning balance | $ 2,822 | |||
Payment to redeem noncontrolling interests | (6,687) | $ 0 | ||
Ending balance | 0 | |||
PORT OP LP | Battery Point | BPT Holdings, LLC | ||||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount [Roll Forward] | ||||
Beginning balance | 2,822 | 2,968 | ||
Net loss attributable to redeemable noncontrolling interest | (81) | (113) | ||
Adjustment to value of redeemable noncontrolling interest | 3,946 | |||
Payment to redeem noncontrolling interests | (6,687) | |||
Ending balance | $ 0 | $ 2,855 | ||
Common equity units received in transaction (in units) | 510,816 | |||
PORT OP LP | BPT Holdings, LLC | ||||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount [Roll Forward] | ||||
Common equity units received in transaction (in units) | 510,816 | |||
Share price (in dollars per share) | $ 13.09 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Lease Cost (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Right-of-use asset (included in real estate held for investment, net) | $ 7,281 | $ 7,281 |
Lease obligation (included in other liabilities) | $ 9,424 | $ 9,424 |
Remaining lease term | 91 years 3 months 18 days | 91 years 3 months 18 days |
Discount rate | 4.80% | 4.80% |
Interest on lease obligation for the period ended June 30, 2022 | $ 112 | $ 334 |
210 West 31st Street | ||
Real Estate [Line Items] | ||
Right-of-use asset, amortization | $ 800 | $ 800 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Minimum Lease Payments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
July 1, 2021 through December 31, 2021 | $ 90 |
2022 | 360 |
2023 | 360 |
2024 | 393 |
2025 | 396 |
Thereafter | 52,167 |
Total expected minimum lease obligations | 53,766 |
Less: Amount representing interest | (44,342) |
Present value of net minimum lease payments | $ 9,424 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event - Preferred Class A | Oct. 25, 2022 $ / shares shares |
Subsequent Event [Line Items] | |
Preferred stock, redemption price (in dollars per share) | $ / shares | $ 1,120 |
Preferred Stock | |
Subsequent Event [Line Items] | |
Redemption period | 120 days |
Redemptions of common stock (in shares) | shares | 15,000 |