Pacific Oak REIT has listed a 930,000-square-foot office building at 110 William Street in New York’s Financial District for approximately $400 million, marking a key step in its liquidation plan with Israeli bondholders. The move comes after the REIT failed to meet payments on its $305.3 million senior loan and $24 million mezzanine debt, details of which were revealed in June.
The property, managed by Newmark, is currently 93 percent occupied, with most tenants being New York City government agencies. The building was first purchased in 2014 by Savanna, a partnership between Nicholas Bienstock and Christopher Schlank, for $261 million. In 2023, Savanna transferred a 40 percent stake to Pacific Oak, which then invested between $110 million and $130 million in upgrades for existing tenants.
Pacific Oak was established in 2009 by Pacific Oak Capital Advisors, a firm co-founded by Keith Hall and Peter McMillan, as a non-traded real estate investment vehicle. However, the company has faced significant operational difficulties, including the removal of Hall and McMillan from their roles as CEO and president in January. The REIT is now under the leadership of restructuring expert Bradley Scher.
Under the terms of its plan, Pacific Oak must sell at least 150 properties within the first six months, followed by additional sales every three months after that. Failure to meet those thresholds constitutes an event of default.
Beyond 110 William Street, Pacific Oak also owns 210 West 31st Street, though asset sales remain focused on meeting debt obligations. The transaction is being handled by Newmark, with Adam Spies, Adam Doneger, and Josh King overseeing the process.
