Silver Star Properties REIT Inc., a publicly registered non-traded real estate investment trust formerly known as Hartman Short Term Income Properties XX Inc., announced that its executive committee has approved the repositioning plan to pivot the company’s assets into the self-storage asset class.
As The DI Wire previously reported, the executive committee of the board recently removed Allen Hartman, founder, as executive chairman of the company and terminated the existing agreement between Hartman Short Term Income Properties XX Inc. and Mr. Hartman, whom the executive committee is investigating for “issues related to certain violations of fiduciary and other duties to the company…”.
As an additional part of the repositioning plan, the board of directors also approved the acquisition of Southern Star Self-Storage Investment Company and says it has reached a long-term employment agreement with Mark Torok, chief executive officer, as it solidifies its pivot away from office, retail and light industrial assets into self-storage.
Southern Star Self-Storage is a privately held real estate company that specializes in the sponsorship and management of DST investments in self-storage properties. Established in 2019, the company currently operates a portfolio of nine properties, which together comprise 321,291 net rentable square feet spread across 2,526 units. Additionally, the company has two facilities, totaling 208,220 NRSF and 703 units, under contract that are expected to close by June 1, 2023. Most of the facilities also have parking for boats, RV’s and autos. The facilities generally contain both climate and non-climate-controlled units and are located predominantly in secondary and tertiary markets in Texas, Florida, North Carolina and Colorado.
“The acquisition of Southern Star Self-Storage underscores our commitment to repositioning the company’s assets into the self-storage asset class to maximize shareholder value,” Gerald Haddock, lead director of Silver Star Properties, said. “The firm inherits experienced self-storage operating capabilities and investment prowess through its Southern Star Self-Storage’s management team. Southern Star Self-Storage will use its expertise in developing assets with DSTs and operate as a ‘sister’ company alongside a subsidiary of current Silver Star Properties’ operations.”
In conjunction with the acquisition, Mark Torok signed a three-year employment agreement with the company.
“I am honored to be leading, with the guidance of the executive committee, the repositioning pivot that we have been developing for several months with the primary goal to maximize shareholder value and improve liquidity for our investors,” said Torok. “With it, we will shift our predominantly out of favor office assets into a stable, recession-resilient, and growing subset of investment real estate. I am thrilled to take the company to new heights and deliver value to our shareholders through a public listing.”
The company says that Mark Torok and the members of the executive committee have also been awarded participation units in a long-term incentive plan.
Silver Star Properties has extensive experience acquiring, owning, managing, and leasing commercial office, retail, light industrial, self-storage and warehouse properties located in Texas.
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