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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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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







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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