HOUSTON — April 3, 2024 — Silver Star Properties REIT, Inc. (“Silver Star” or the “Company”) is a self-managed real estate investment trust that is currently repositioning in an orderly manner into the self-storage asset class. Hartman SPE, LLC (the “SPE”), an indirect subsidiary, which owns legacy office, retail, and industrial properties today announced that now that it has successfully effectuated the Chapter 11 Plan previously confirmed by the United States Bankruptcy Court for the District of Delaware, the Company will implement a reduction in force to maximize its efforts toward its commitment to strengthening the Company’s long-term strategic objectives.
Gerald Haddock, Executive Chairman of the Executive Committee of Silver Star, stated, “We are pleased with our progress towards our goals of moving the Company into self-storage. To that end, the reduction in force will, together with decreases in property operating expenses, additional cost reduction measures and the exit from Chapter 11, allow the Company to resume its growth strategy.”
Mr. Haddock reiterates, “The reduction will remove roles that are traditionally needed for the management of legacy office, retail, and industrial properties, and this will position us to direct the entire enterprise with a coordinated and focused strategy. Acquiring institutional quality self-storage properties will allow us to more readily fulfill our commitment to list on an established national exchange for trading.”
The Company’s investment targets include self-storage properties and other properties that may be acquired at discounts from replacement costs and that provide both a favorable current return on invested capital and the opportunity for significant cash flow growth through future increases in rental rates or significant turnaround opportunities. Integral to this investment strategy is the identification of specific markets and submarkets that management believes will experience significant increases in demand for self-storage due to the impact of factors that management expects to have a positive effect on population and employment growth, including (i) local factors, such as political environments favorable to business, favorable tax structures, affordable housing and an attractive quality of life; (ii) demographic shifts in the United States, such as the relocation of businesses and the migration of people from the Northeast and the West Coast to Texas; and (iii) specific regional, national and global economic developments, such as an increase in demand for self-storage in Texas and other markets driven in part from oil, gas and other natural resources in Texas.
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Forward-Looking Statements: This press release contains certain forward-looking statements. Because such statements include risks, uncertainties, and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements, and you should not place undue reliance on any such statements. Several important factors could cause actual results to differ materially from the forward-looking statements contained in this material. Forward-looking statements in this press release speak only as of the date on which such statements were made, and the company undertakes no obligation to update any such statements that may become untrue because of subsequent events. Such forward-looking statements are subject to the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.