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Friday, 11 August 2017

Pacific Office Properties Warns of Inability to Remain Going Concern

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Commercial Real Estate Direct Staff Report

Pacific Office Properties Trust, the Jay Shidler-controlled REIT that owns five office properties with 2 million square feet in Honolulu and Phoenix, said cash flow generated by its properties would be insufficient to meet its debt and working capital requirements, so its ability to remain a going concern was in doubt.

It said that in order to remain solvent it would have to modify the terms of a fully drawn $25 million credit facility from First Hawaiian Bank that matures in December and $32.4 million of loans that another Shidler affiliate had provided. The company also carries nearly $280 million of mortgage debt that matures in 2019 and has a rate pegged to Libor plus 450 basis points.

The company in a regulatory filing said it might need to sell stakes in its properties to a venture partner, or find some other way of raising capital. It might also consider a sale, merger or recapitalization of the company. It first had warned that it was at risk of not remaining viable last year.

The Honolulu company was founded just more than 10 years ago through a reverse merger with Arizona Land Income Corp., a tiny REIT that until then had focused on providing financing for land in the Phoenix area. Shidler's plan at the time was...





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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Honolulu
  • States: Hawaii
  • Sector: Office
  • Subject: Bankruptcy/Foreclosure (BKRPT), Property Offerings (OFF)
  • Private: Yes
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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