Silver Star Properties REIT, a publicly registered non-traded real estate investment trust formerly known as Hartman Short Term Income Properties XX Inc., announced that, as of March 10, 2023, the executive committee of the board removed Allen Hartman, founder, as executive chairman of the company. The board of directors had previously granted all decision-making authority to the executive committee.
The committee also terminated the existing agreement between Hartman Short Term Income Properties XX Inc. and Al Hartman.
Currently, Silver Star REIT says the committee is investigating “issues related to certain violations of fiduciary and other duties to the [c]ompany by Mr. Hartman.”
The company noted that the Hartman remains a director on Silver Star board.
As The DI Wire previously reported in March 2023, Silver Star Properties REIT announced the company was “currently in discussions” with Allen Hartman and Hartman vREIT XXI, Inc. regarding the complete separation of the company from Hartman vREIT XXI Inc.
Hartman vREIT XXI warned that there is “substantial doubt about the company’s ability to continue as a going concern” in November 2022, as reported by The DI Wire.
In December 2022, the company also changed its name to Silver Star Properties REIT Inc. to “reflect a new direction aimed at maximizing shareholder value.”
The company also launched a plan to pivot away from being primarily an office REIT and reposition the company’s assets into the self-storage asset class. However, the company announced that although the repositioning process is ongoing, it has been temporarily suspended.
As of Sept. 30, 2022, Silver Star Properties REIT owned 44 commercial properties comprising approximately 6.8 million square feet plus four pad sites and two land developments, all located in Texas. On July 8, 2022, the company suspended its share redemption plan to “support the long-term fiscal health” of the REIT.