Al Hartman Blasts Silver Star (SLVR) Asset Sale at Fire Sale Price, Calls for Board Resignations Over $7.4M Value Destruction

Summary

Dear Silver Star Shareholder,

We believe that Silver Star has made another huge blunder in the recent liquidation of a legacy asset. It has to come to my attention that they sold Gulf Interstate for less than 20% of its prior value. Here are the facts:

A year after Silver Star began managing the asset, the anchor tenant moved out and the occupancy dropped to about 20%. There have been very few new leases signed in the property since then. The property was valued at about 17 M three years ago and we believe it was recently sold for an estimated 2.6 M price, which is considered a fire sale price. Haddock’s mode of operation is that he allows the properties to drop in occupancy, resulting in negative cash flow from the properties, and he then sells the assets for distressed prices. Furthermore, he allows deferred maintenance to occur on the properties which further destroys the value.

We believe if we were running the Company, we would be able to lease up to 90% of the property and then sell it for as much as 10 M. The property is located in one of the hottest markets in Houston called the “Energy Corridor” and is one quarter mile away from a property that vREIT XXI owns that will be over 95% occupied after the execution of a pending lease. Under proper management, the property would realize a much higher price.

As I have stated in prior letters, Haddock, by taking a high salary and a million shares of stock while totally mismanaging and destroying the value of the Company, is creating personal liability for himself. In this case the difference between 2.6 M and 10 M is 7.4 M. By virtue of this letter, Haddock and the other directors on the Executive Committee are hereby being put on notice that they may be held personally liable for what we believe to be a 7.4 M dollar loss of value to shareholders. Furthermore, the executive employees who are complicit in selling distressed assets and are profiting from it through high salaries and bonuses will also be held accountable.

This matter is urgent. To stop him from further destroying our Company please reach out to him immediately and tell him to cease the sale of any of the legacy assets. The board’s emails are as follows: Gerald@haddockinvestments.com, jim.still@rdcadvisors.com, jtompkins@artaequity.com.

Please reach out to them immediately and demand that they resign from the board and stop selling assets until they are replaced at the shareholder meeting in about two and a half months. Thank you for your prompt attention to this matter.

Sincerely,

Al Hartman

Source:

https://www.sec.gov/Archives/edgar/data/831616/000110465925044488/tm2514023d1_dfan14a.htm