Silver Star Pays Off Creditors, Shifts to Self-Storage

Silver Star Properties REIT is currently repositioning into the self-storage asset class.

Hartman SPE, LLC (the “SPE”), an indirect subsidiary, that owns office, retail, and industrial properties, and lenders Benefit Street Partners and RMWC have closed a $135 million exit facility (the “Exit Facility”). The agreement allows SPE to go effective on its Chapter 11 Plan of Reorganization. The Exit Facility will fund the Chapter 11 Plan, which provides for payment in full to all unsecured creditors and tenants and the full reinstatement of all interests without impairment. Besides the Exit Facility, SPE will liquidate its property holdings. As of December 31, 2023, the Company owned 33 commercial properties comprising approximately 4.6 million square feet located in San Antonio, Richardson and Houston, Texas.

Benefit Street Partners provided $120 million and RMWC provided $15 million of the exit facility.

The closing of the Exit Facility paves the way for the Company to complete its shift into the self-storage sector, where Silver Star expects to have approximately $370 million in available funds.