Self-Storage Operator Silver Star Properties REIT Responds to 'Reckless, Factually Dishonest' Messages From Former CEOSelf-Storage Operator Silver Star Properties REIT Responds to 'Reckless, Factually Dishonest' Messages From Former CEO
January 29, 2025

Silver Star Properties REIT Inc., a publicly registered, non-traded self-storage real estate investment trust, has responded to Jan. 27 claims made by former CEO Al Hartman that it deems “reckless” and “factually dishonest.” Hartman’s comments relate to a court ruling made in Silver Star’s favor following a civil lawsuit between the two parties. The suit stemmed from Hartman’s claims about compensation and company stock shares following his removal as executive chairman by the company’s board of directors, according to sources.
Silver Star urged its shareholders to disregard Hartman’s communications and instead rely on official updates from the company. The company also refuted Hartman’s remarks, noting that the recent court decision cited multiple instances in which Hartman’s credibility was questioned, including a finding that he was dishonest in prior actions, according to a company press release.
Silver Star released the following statement:
First and foremost, we want to address the gross misrepresentation of the recent court decision that Mr. Hartman included in his correspondence. Contrary to his assertions, the court’s opinion does not vindicate his claims, nor does it support the inflammatory accusations he has made. The court not only found in Silver Star’s favor, in the Memorandum Order there are no less than five instances where Al Hartman’s credibility is raised. One stated explicitly, ‘The Court found Plaintiff to have general credibility issues stemming from instances in which Plaintiff had been shown to be dishonest.’
Moreover, Mr. Hartman’s communication included slanderous statements about the company and its executive committee. These comments are not only unfounded but are also a direct attempt to undermine the integrity of the current leadership and the work we are doing to ensure the company’s success. Such actions are unbecoming of someone who once held a leadership position in this organization and in all probability sold your current shares to you.
We want to reassure you that the executive committee and leadership team remain steadfast in their commitment to transparency, accountability and the best interests of the company. While we regret the need to address these distractions, we will not allow, at this time, slanderous falsehoods to go unchallenged.
Founded in 1983 and headquartered in Houston, Silver Star has experience in the acquisition, lease, management and ownership of commercial-office, light-industrial, retail, self-storage and warehouse properties, primarily in Texas. It changed its name from Hartman Short Term Income Properties XX Inc. in December 2022.
Sources:
Justia, Silver Star Properties REIT, Inc. v. Hartman vREIT XXI, Inc. et al, No. 1:2023cv02720 - Document 33 (D. Md. 2024)
Yahoo Finance, Silver Star Properties REIT Sends Message to Shareholders Regarding Former CEO Communications
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