As previously reported by MSM, Silver Star Properties REIT, Inc. is shifting its focus into the self-storage asset class.
Hartman SPE, LLC (SPE), an indirect subsidiary that owns legacy office, retail, and industrial properties, confirmed in a press release today that it had filed Chapter 11 in the United States Bankruptcy Court for the District of Delaware.
Under the Chapter 11 Plan, SPE will continue to sell its assets to pay its undisputed creditors in full, complete the refinance of its maturing senior indebtedness, and maximize capital available for Silver Star's redeployment into the self-storage asset class.
When all the sales are completed, Silver Star expects to have approximately $370 million in available funds, assuming a loan-to-value ratio of 50%, for its investment strategy.
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. Confirmation of the Chapter 11 Plan, and the expected exit from Chapter 11 in the near future, will allow the Company to resume its new growth strategy and make distributions to its shareholders much quicker, all of which have been hindered by the dissident shareholder's interference."
The full press release can be read here.