Dear Fellow Shareholders, Silver Star Properties is at a defining moment. As shareholders, we must decide whether to continue a strategy that has eroded value—or choose a plan focused on liquidity, transparency, and returning capital.
A Strategy That Isn’t Working
Since late 2022, over $395 million in legacy assets have been sold. Yet those proceeds were reinvested into the Walgreens stores and mini-storage properties all without permission from the Silver Star Shareholders. They should have returned the capital to shareholders instead. But…
- They borrowed money at 19% interest rates to buy properties with yields at 3-4%
- The properties do not cover their debt service and have negative cash flow
- Failed to generate shareholder returns
This is not sustainable. The new portfolio delivers $5.8 million in annual NOI—against $8.7 million in debt costs thus increasing the financial risk to you.
A Smarter Path Forward
We believe there’s a better, more responsible approach:
- Sell Walgreens and mini-storage assets
- Focus on lease-up and maximizing value from legacy assets
- Immediately start returning capital to shareholders
Our priority is liquidity executed with discipline, market awareness, and alignment with shareholder goals.
Why It’s Time for a Change
- Net Asset Value has dropped from $412 million to $134 million since 2022.
- Sales prices declined significantly in the second half of 2024 - 2025. This is solely due to Silver Star’s operational deficiencies in dropping occupancy and not maintaining the properties.
- nstead of doubling down with more speculative financing on their proposed $50M equity raise prioritizing new investors, we propose distributions, not dilution.
The Choice Is Clear
The Hartman-nominated directors, Longnecker, Thomas, and Hartman, bring real estate expertise and a commitment to restoring value. Our plan is simple, actionable, and focused on returning capital.
Call us directly at (619) 664-4780 to vote for the return of your capital or vote the blue proxy from our online e-mail.
Thank you for your trust and support.
Sincerely,
Al Hartman CEO & President
