Silver Star Properties REIT Inc., a non-traded real estate investment trust formerly known as Hartman Short Term Income Properties XX Inc., announced that self-storage veteran Steve Treadwell will become the company’s new chief executive officer effective Aug. 21, 2023.
In May, Silver Star announced that their recently appointed chief executive officer, Mark Torok, had resigned.
In connection with Treadwell’s selection as chief executive officer, he executed a three-year employment agreement in which will receive a base salary for the first annual period equal to $550,000 and thereafter any increase will be determined by the executive committee with input from the company’s compensation consultant.
Gerald Haddock, chairman of the Executive Committee of Silver Star, stated, “We are thrilled to have Steve Treadwell join as CEO. This is a significant milestone for the company as we continue to reposition our asset base into self-storage. As a corporate problem-solver, Steve will leverage his extensive self-storage industry experience, his exceptional vision and his outstanding management skills to significantly accelerate our transition and help us strengthen our portfolio.”
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 quarter quarterly report over “uncertainty as to the company’s ability to obtain financing to satisfy the existing SASB Loan obligation…”
David Wheeler, Silver Star’s president, commented, “We have been diligently preparing the foundation for Steve’s arrival by generating cash for our transition through property sales which will be instrumental as we look to close on the refinancing of our SASB Loan around September 1st.”
Upon closing on its refinancing of the SASB Loan, Silver Star expects to have a loan to value ratio of approximately 50%; and upon the company completing its repositioning, to have available around $400 million to invest in its repositioning and exchange listing process.
Haddock emphasized, “It is important that throughout our selling process that the management team has been adeptly dealing with the complexities of 1031 Exchange transactions in order to save tax dollars on the sale of assets. We believe Steve’s leadership and our refinancing will significantly advance our repositioning efforts.”