Gerald Haddock’s plan to shift Silver Star Properties’ focus from office buildings to self-storage has encountered a setback. The real estate investment trust (REIT) is facing foreclosure on three Texas office properties after allegedly defaulting on a $57.8 million loan.
The loan, provided by a Benefit Street Partners fund, is tied to Three Forest Plaza in Dallas, One Technology in San Antonio, and Ashford Crossing II in Houston, according to Roddy’s Foreclosure Listing Service. Three Forest Plaza is a 19-story building constructed in 1983 and renovated in 2011. One Technology is a 15-story building built in 1983 and renovated in 1996. Ashford Crossing II, also built in 1983, stands six stories tall.
Silver Star did not respond to requests for comment about the situation.
This development follows ongoing legal disputes between former CEO Allen Hartman and current CEO Gerald Haddock. Hartman was removed by the board in 2023 amid accusations of nepotism and mismanagement that reportedly led to Silver Star defaulting on a $259 million CMBS loan from Goldman Sachs that October. In December 2023, Silver Star trustees sued Hartman for $50 million, alleging fraud and self-dealing. The U.S. Securities and Exchange Commission began an inquiry into the company in February 2024.
The board further claims that Hartman has attempted to undermine the company since his removal. Hartman has denied all allegations against him.
Haddock responded to the firm’s financial troubles by steering Silver Star away from its commercial property portfolio toward self-storage assets—a strategy that included selling off its 35-property commercial holdings and filing for bankruptcy protection in 2023. As part of this transition, Silver Star acquired a self-storage property at 14810 Hagen Ranch Road in Delray Beach, Florida for $26.5 million in August 2024.
Additional background on these developments can be found through reporting on the SEC investigation into Silver Star Properties, Gerald Haddock’s plans for restructuring, and coverage of Silver Star subsidiary’s bankruptcy protection efforts.
