If you have suffered losses in Silver Star Properties REIT (formerly known as Hartman Short Term Income Properties XX), you may be able to pursue recovery of your losses through securities arbitration or class action litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
Silver Star Properties REIT / Hartman Short Term Income Properties XX Investment Loss Recovery Options
Silver Star Properties REIT Inc. is a non-traded REIT that owns various commercial properties in Texas. It was formerly known as Hartman Short Term Income Properties XX, Inc, and was sold to investors by financial advisors across the United States. The REIT focused on two primary investment strategies: the Warehouse Properties Investment Strategy and the Office REIT Approach. In December 2022, Hartman Short Term Income Properties XX, Inc. changed its name to Silver Star Properties REIT Inc. to “reflect a new direction aimed at maximizing shareholder value.”
Silver Star Properties REIT has had a string of negative news this past year, including the announcement that in March 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.
It was also reported that in March 2023, Silver Star Properties REIT 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. In a recently filed quarterly report with the SEC, Silver Star Properties REIT Inc. (fka Hartman Short Term Income Properties XX), issued a warning regarding its ability to continue as a going concern.
In July 2023, it was reported that the SEC initiated an investigation related to Silver Star Properties REIT Inc., its acquisitions and/or its former officers, as based upon a letter to the company’s principal executive officer David Wheeler from the commission that was made available to an industry publication. The letter from the SEC does not disclose the exact target of the investigation.
The letter focuses on several matters and advised Silver Star Properties REIT to retain documents that may be relevant to the investigation, including:
- The removal of Allen Hartman, as well as the termination of the agreement between Hartman Short Term Income Properties XX Inc. and Mr. Hartman;
- Silver Star’s REIT's investigation into “certain violations of fiduciary and other duties to Silver Star by Hartman;”
- Silver Star’s purchase of all equity interests in Southern Star Self-Storage Investment Company;
- The recent resignation of Mark Torok as chief executive officer of Silver Star, who resigned in May, less than a month after reaching a long-term employment agreement with the board of directors;
- The determination that Silver Star had material weaknesses in controls over the review, approval and disclosure of related party transactions and the insufficient design of controls relating to the timing of revenue recognition of estimated recoveries of operating expense items under leasing agreements.
Finally, the SEC letter was reported to include statements from the company’s 10-K, including the significant depreciation of value in the company’s net asset value per share, from $12.08 in 2021 to $6.25 in 2022.
Investors May be able to Pursue Silver Star Properties REIT / Hartman Short Term Income Properties XX Loss Recovery
Fortunately for investors, they may be able to pursue recovery of losses that they may have suffered (or may suffer) in Silver Star Properties REIT (formerly known as Hartman Short Term Income Properties XX) through securities arbitration or securities litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your legal options. All consultations are strictly confidential, and all representation of investors is on a contingency fee - meaning you owe no attorneys or costs fees if there is not a recovery of investment losses.
Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and arbitration practice, please visit www.investmentfraudattorneys.com.
