Pacific Office Properties Trust Inc. said it issued shares of common stock to certain insiders who are creditors. In exchange, they will cancel $3 million in debt incurred by the real estate investment trust’s operating partnership.

The Los Angeles REIT owns and operates office properties in the western United States, mostly in Honolulu, San Diego, Los Angeles, and Phoenix, and has been hurt this year by the downturn in the commercial real estate market. The REIT earlier this month closed on a two-year, $10 million line of credit with First Hawaiian Bank.

Under the new agreement, subordinated promissory notes of Pacific Office Properties L.P. totaling $3 million were exchanged for 789,095 shares of Pacific Office’s stock by Shidler Equities L.P., Reynolds Partners L.P., MJR Equities LLC, JRI Equities LLC and Lawrence J. Taff. The stock was valued at $3.82 per share.

Shidler Equities is controlled by Pacific Office Chairman Jay H. Shidler and Taff. They are serving as the REIT’s interim chief executive officer and chief financial officer, respectively, since the departure of two executives. MJR Equities is controlled by Matthew J. Root, the REIT’s chief investment officer. JRI Equities is controlled by James R. Ingebritsen, the REIT’s executive vice president for capital markets/operations. Each party also is an owner of the company’s advisor, Pacific Office Management Inc.

The deal was announced after Friday’s market close. Shares were up 55 cents, or 15 percent, to $4.22 in midday trading on the New York Alternet.