Pacific Oak Capital Markets Ceases Operations: What it Means for Investors
Pacific Oak Capital Markets LLC, a distributor and managing broker-dealer of alternative investments, announced it has officially ceased operations as of June 30, 2025. The news, posted on the firm’s website, has raised concerns among investors in various non-traded investments that Pacific Oak helped distribute.
The firm was known for wholesaling real estate-based alternative investment products, many of which were illiquid and carried a high level of risk. Affected offerings include:
- SmartStop Self Storage REIT (NYSE: SMA)
- Strategic Storage Growth Trust III
- Strategic Storage Trust VI
- Blue Door Property I, DST
What Does This Mean for Investors – Pacific Oak Capital?
While Pacific Oak Capital Markets has directed investors to the sponsors of these investment products, the firm’s closure may leave many wondering what rights and options they have—especially if they are experiencing losses or ongoing illiquidity.
These types of investments, including non-traded REITs and Delaware Statutory Trusts (DSTs), often come with high upfront fees, limited liquidity, and opaque pricing, making them unsuitable for many retail investors—particularly retirees or conservative investors seeking income or stability.
Risks of Investing in Alternative Investments
Alternative investments like non-traded REITs and DSTs are complex and often not appropriate for all investors. Common risks include:
- Illiquidity – Investors often cannot sell these products easily or at fair market value.
- High commissions – Brokers may earn commissions of 7–10%, creating a conflict of interest.
- Valuation concerns – These investments may not be priced transparently or regularly marked to market.
- Sponsor or broker-dealer instability – As seen with Pacific Oak’s closure, management changes can disrupt investor communications and support.
Recovery Options through FINRA Arbitration
If you purchased a Pacific Oak or SmartStop-related investment based on unsuitable advice or misleading information, you may be able to recover your losses through FINRA arbitration. Brokerage firms have a duty to conduct adequate due diligence and ensure investments are appropriate based on a customer’s age, investment objectives, income level, and risk tolerance.
The White Law Group is currently investigating potential FINRA arbitration claims involving Pacific Oak Capital Markets and affiliated investment products. We represent investors nationwide in claims against brokerage firms for:
- Unsuitable investment recommendations
- Misrepresentations or omissions of material facts
- Failure to conduct adequate due diligence
- Over-concentration in illiquid or high-risk products
Free Case Evaluation
If you are concerned about your investment in a Pacific Oak or SmartStop offering, call The White Law Group at (888) 637-5510 for a free consultation. You may also contact us online by visiting www.whitesecuritieslaw.com.
About The White Law Group
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm dedicated to representing investors in FINRA arbitration claims against broker-dealers. To learn more about our experience with alternative investment cases, visit our Alternative Investment Loss Recovery page.
Last modified: July 7, 2025
