Massive Real Estate Footprint Under Protection
The company’s sprawling portfolio includes 124 properties across 29 states and the District of Columbia, totaling 17.2 million square feet of rentable office space. The Chapter 11 petition lists the REIT’s assets and liabilities between $1 billion and $10 billion, placing it among the largest commercial real estate restructurings of the year.
The bankruptcy underscores the mounting challenges facing the office property sector, as rising interest rates, remote work trends, and declining occupancy continue to strain landlords nationwide.
Legal and Financial Advisors Step In
To navigate the complex restructuring, OPI has tapped Moelis & Co. as its investment banker and AlixPartners as its restructuring advisor. The debtor is represented by Timothy A. Davidson II of Hunton Andrews Kurth LLP, a seasoned bankruptcy attorney known for steering large-scale corporate reorganizations.
A Battle for Reinvention in a Shifting Market
With its court-supervised restructuring now underway, OPI is betting that its noteholder-backed equity conversion and fresh financing package will allow it to weather the storm that has rocked commercial real estate since the pandemic.
If successful, the move could transform OPI from a debt-burdened landlord into a leaner, equity-driven REIT ready to adapt to a new era of office space demand — a high-stakes gamble that could redefine its future or mark another casualty in the industry’s ongoing reset.
