Silver Star Properties REIT Lawsuit Update: Ongoing Disputes and Investor Concerns
Have you suffered investment losses in Silver Star Properties REIT? The White Law Group continues to investigate potential claims against broker-dealers who may have improperly recommended investments in Silver Star Properties REIT, formerly known as Hartman Short Term Income Properties XX Inc.
Bitter Dispute with Former CEO Escalates
Silver Star Properties REIT and its former CEO continue to engage in a highly public and legal battle, with accusations flying in both directions over financial mismanagement, insider enrichment, and voting manipulation, according to SEC filings.
Silver Star has reportedly blamed its former leadership for a steep drop in the REIT’s net asset value per share, from $12.08 to $6.25 between 2021 and 2022, citing inflated property valuations, unpaid vendors, and loan defaults.
The former CEO, in turn, has reportedly accused the current board of selling nearly $400 million in income-generating assets without distributing proceeds to shareholders. He also criticized the REIT’s use of a “poison pill” stockholder rights plan that increased the voting power of other shareholders, excluding him and his affiliates. He has also alleged illegal proxy solicitation, claiming the company’s representatives called shareholders without authorization to solicit votes.
In response, Silver Star issued cease-and-desist letters, disputing claims about SEC compliance and challenging efforts to discredit the January 2024 board election. Although the former executive no longer has a formal role at the REIT, he remains one of its largest stockholders.
Court-Ordered Shareholder Vote Rescheduled
A Maryland court ruling in April 2025 ordered Silver Star to hold a shareholder meeting to determine whether to liquidate the REIT or support the board’s strategic pivot to self-storage. Initially scheduled for June 30, then moved to July 7, the meeting is now set for August 29, 2025, at 10 a.m. CT.
The court ruled that Silver Star’s initial public offering concluded in 2013, triggering a charter requirement to either list its shares or seek shareholder approval to delay liquidation by 2023. It found that the company failed to meet this obligation. While the court declined to force immediate liquidation, it mandated clear disclosures and a timely vote.
Timeline of Key Events for Investors
August 2025: Shareholder Vote Rescheduled
The court-ordered meeting, now set for August 29, 2025, will allow investors to choose between liquidation or pursuing the board’s self-storage strategy. Only shareholders of record as of June 20 may vote.
March 2025: Workforce Reductions and Cost Cuts
Silver Star announced that it reduced its workforce from 190 in 2022 to just 22 full-time employees, aiming for $15 million in annual savings.
December 2024: Custodian Drops Shares
Charles Schwab ceased custodianship of Silver Star shares due to the company’s failure to meet financial reporting benchmarks.
June 2024: NAV Plummets Again
The REIT reported a NAV of $2.01 per share, down from $2.70 in December 2023. Shares were originally sold at $10 per share.
February 2024: Bankruptcy Emergence
Subsidiary Hartman SPE emerged from Chapter 11 bankruptcy with $135 million in financing. As of September 2023, it held 35 properties, while Silver Star directly owns 3 income-generating assets.
February 2024: Legal Challenge to Rights Plan
The former CEO filed legal actions challenging Silver Star’s Rights Agreement, seeking to block enforcement of the poison pill. The company has denied the claims and said it would defend itself vigorously.
November 2023: SEC Investigation Disclosed
Silver Star disclosed that the SEC had launched a formal investigation, following document requests and a hold notice. The company stated that the matter has since concluded without further enforcement.
July 2025: Secondary Market Price is $0.42
According to Lodas Markets, Silver Star shares are trading for just $0.42 per share on the secondary market, despite the company’s own stated NAV of $2.01.
What is Silver Star Properties REIT?
Silver Star Properties REIT Inc. is a publicly registered, non-traded real estate investment trust (REIT) that was previously focused on office, retail, and industrial assets. Amid growing challenges in the commercial real estate sector, the company has shifted toward self-storage investments, aiming to reduce debt and stabilize operations. Its investments are managed through Hartman XX Limited Partnership and Hartman SPE LLC.
FAQs: Silver Star Properties REIT Investment Losses
1. What is the dispute between Silver Star and its former executive about?
The conflict centers around allegations of financial mismanagement, asset sales without returns, and unfair changes to voting rights. Both sides have taken legal and public actions against each other.
2. What did the court decide about the REIT’s obligations?
A Maryland court found that Silver Star was required to hold a liquidation vote by 2023 and failed to do so. The court ordered a shareholder meeting but upheld the company’s poison pill defense.
3. Can investors recover losses from Silver Star Properties REIT?
Yes. If your broker recommended Silver Star without properly disclosing the risks of investing in non-traded REITs, you may be eligible to file a FINRA arbitration claim to recover damages.
Individual Arbitration vs. Class Action Lawsuit
Class action lawsuits are ideal for investors with smaller claims. However, if your losses exceed $100,000, an individual FINRA arbitration claim is usually more effective. Each situation is unique, so it’s important to evaluate your options with a qualified attorney.
Contact a Securities Attorney
This information is provided by The White Law Group, a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, IL and Seattle, WA.
If you invested in Silver Star Properties REIT (formerly Hartman REIT) and have concerns, call us today at 888-637-5510 for a free consultation.
We can help you understand your legal rights and determine whether your financial advisor or broker may be liable for your investment losses.
Tags: Hartman Short Term Income Fund XX, non-traded REITs, SEC investigation, Silver Star Properties REIT Last modified: July 11, 2025
