Another Silver Star Properties REIT CEO Quits
Silver Star Properties REIT Inc., a non-traded real estate investment trust formerly known as Hartman Short Term Income Properties XX Inc., announced yesterday that Steven B. Treadwell resigned as chief executive officer, effective Oct. 27, 2023, just two months after being appointed to the position.
Treadwell’s brief term as CEO follow on the heels of the even shorter term of former CEO Mark Torok, who resigned in May 2023 just one month after assuming the role.
In response to the resignation of Treadwell, the executive committee of the board of directors of the company named David Wheeler, the company’s current president, as interim CEO.
The executive committee says it has initiated discussions with its search firm to re-engage with “experienced and successful self-storage executive candidates who were contenders before.”
Gerald Haddock, executive chairman of the executive committee, commented on David Wheeler’s background stating, “We have seen Mr. Wheeler mature greatly as he has been given increased responsibility in the company over the last year, and we believe that he is ready for this role. Wheeler’s wealth of real estate experience, coupled with his recent immersion in the self-storage sector, uniquely position him to drive our strategic initiatives forward. Furthermore, the company is actively pursuing additional support from select third-party advisors in the self-storage industry to strengthen our position and ensure our success in this dynamic market.”
Additionally, the company will initiate “further executive searches to add on experienced self-storage operating support as it becomes advantageous and may augment its management team with support from Southern Star Self Storage Investment Company.”
Earlier this year, as reported by The DI Wire, the company included a warning regarding its ability to continue as a going concern in its first quarterly report over “uncertainty as to the company’s ability to obtain financing to satisfy the existing SASB Loan obligation…”
The executive committee says it remains “steadfast in its mission to reposition the company’s assets within the self-storage asset class, leveraging the focused investment management expertise gained through the acquisition of Southern Star Self Storage Investment Company and over the last six months.”
In addition to the company’s move into self-storage, it will seek to acquire other “attractive assets as a result of its network of relationships, expected availability of capital and ability to structure transactions creatively.”
Wheeler remarked, “We are pleased to report that the company has been successful in executing on over $152 million in property sales during 2023, which marks a significant milestone in our strategic plan. When all of the sales are completed, we expect to have approximately $370 million in available funds, assuming a loan-to-value ratio of 50%, for the company’s investment strategy in real estate assets.”
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