San Diego Business Journal

REIT in Default on Office Complex

Thursday, September 1, 2011

The locally based owner of Sorrento Technology Center in San Diego is in default on a loan of $11.6 million, according to its Aug. 15 filing with the Securities and Exchange Commission.

In the filing, Pacific Office Properties Trust Inc. said it is in negotiations with its lender to modify terms on the loan tied to the office complex it owns at 10140 and 10180 Barnes Canyon Road in Sorrento Mesa.

Pacific Office Properties said it received a notice of default from the lender on June 6.

According to an Aug. 31 report by FM Financial Publishing LLC, the loan was securitized through Wachovia Bank Commercial Mortgage Trust and matures in January 2016. It was paid through June and had been placed into special servicing last May.

The two-building Sorrento Technology Center, with a total of just over 63,000 square feet, was built in 1984 and 1985, according to CoStar Group.

Pacific Office Properties, with headquarters in San Diego, is a real estate investment trust that owns interests in 45 office buildings in Hawaii and California. The company announced in July that NYSE Amex has accepted its plan for regaining compliance with the stock exchange’s listing standards.

The company in April had received notice of a potential delisting because it had total equity of less than $2 million and losses in two out of its three most recent fiscal years. The listing, under the symbol PCE, is expected to continue at least through Oct. 19, 2012.

— Lou Hirsh