Hartman Removed From Silver Star Board, as Shareholder Vote Delayed to July 7
In the latest development in the ongoing feud between Silver Star Properties REIT, a publicly registered non-traded real estate investment trust formerly known as Hartman Short Term Income Properties XX Inc., and its former chief executive officer, Allen R. Hartman, Silver Star has announced that Hartman has been removed from the company’s board of directors, as confirmed by a majority of the REIT’s shareholders.
According to the REIT, the results of the vote tally for the firm’s January 2024 consent solicitation confirmed Hartman’s removal, and 51.33% of all shares outstanding elected Gerald W. Haddock, James Still, and Jack Tompkins. The REIT stated that a recent decision by the Appellate Court of Maryland reversed a trial court’s preliminary injunction that had delayed the vote count, thereby allowing the company to proceed with tallying shareholder votes. The vote count was completed by an independent inspector.
Silver Star also recently stated that the court-ordered shareholder meeting, originally scheduled for June 30, 2025, will now take place a week later on July 7 at 10:00 a.m., CT, and offers shareholders the choice of either voting for liquidation or supporting the company’s pivot into self-storage. Shareholders of record as of June 1 are eligible to vote.
Despite his removal from the board, Hartman reports, through a series of letters, that he and his affiliates remain one of the largest stockholders of the REIT, representing approximately 7.76% of the issued and outstanding stock. Hartman continues to encourage his fellow stockholders to vote for liquidation, calling for Silver Star to “stop falsifying Hartman’s records” and once again has claimed that, under the leadership of the Hartman group, the REIT could achieve a “far superior” NAV through liquidation, a statement that echoed his assertions regarding the REIT’s sale of the Gulf Plaza property. Silver Star has continued to refute his claims, calling them a “fantasy that defies both common sense and real estate economics.”
The dispute between the two groups has been ongoing since at least March 2023, when Silver Star announced the removal of Hartman as executive chairman. Hartman initiated legal proceedings against Silver Star, alleging that, among other charges, the company breached Maryland law by not holding an annual stockholder meeting. Silver Star responded with a lawsuit of its own against Hartman in December 2023, accusing Hartman of mismanagement.
In January 2024, Silver Star’s executive committee alleged that Hartman was seeking “personal control” of the company. Hartman quickly responded with a shareholder address video, doubling down on his previous claims. In July 2024, Silver Star overcame a major litigation hurdle when the Circuit Court for Baltimore City signed an order denying Hartman’s motion for partial summary judgment, which sought to liquidate Silver Star. In September 2024, Silver Star continued to refute Hartman’s claims and defend the company’s shift toward self-storage. In March 2025, Silver Star eliminated nearly 90% of its workforce for operations restructuring in what it called a “comprehensive strategic turnaround plan” with self-storage investments.
More recently, Silver Star announced that it is partnering with Emerson Equity LLC to lead a $50 million preferred equity offering under Rule 506(c) of Regulation D. Proceeds will be used to acquire self-storage assets and drive the company toward a scalable, public-ready platform. According to the company, the offering will include an optional 721 roll-up into Silver Star operating partnership units for long-term alignment and tax efficiency.
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