Silver Star Faces Foreclosure on Three Office Properties

UPDATED 8/29/25 1pm

CEO Gerald Haddock’s effort to right the ship of Silver Star Properties after the reign of Allen Hartman has hit a snag.

In its effort to pivot to self-storage, the REIT has been offloading office properties throughout Texas for two years. A recent brush with foreclosure shows it’s struggling to do so fast enough.

Silver Star received a foreclosure notice on a $57.8 million loan provided by a Benefit Street Partners fund connected to three properties: Three Forest Plaza, at 12221 Merit Drive in Dallas; One Technology, at 7411 John Smith Drive in San Antonio; and Ashford Crossing II, at 1880 Dairy Ashford in Houston, according to Roddy’s Foreclosure Listing Service.

The foreclosure sales have been canceled, Haddock said.

Three Forest Plaza is a 19-story office building constructed in 1983 and renovated in 2011. One Technology is a 15-story office building built in 1983 and renovated in 1996. Ashford Crossing II is 6 stories and was built in 1983.

He endorsed the characterization of the company as “digging out of a hole,” saying “It’s been much harder than I expected.”

The foreclosure comes amid an ongoing legal battle between Haddock and Hartman.

Hartman was ousted by the company’s board in 2023 for accusations of nepotism and mismanagement that allegedly culminated in Silver Star defaulting on a $259 million CMBS loan from Goldman Sachs in October 2023. Silver Star trustees sued Hartman for $50 million in December 2023, accusing him of fraud and self-dealing. The SEC opened an inquiry into the firm in February 2024.

The board also claimed that Hartman has been trying to sabotage the company since his ouster.

Hartman has denied the allegations.

Amid the firm’s financial struggles, Haddock spearheaded an effort to pivot from Silver Star’s low-to-mid-tier commercial assets to self-storage. The pivot involved an effort to sell off its 35-property commercial portfolio as well as a bankruptcy filing in 2023.

Meanwhile, the company has been collecting self-storage properties, including a $26.5 million property at 14810 Hagen Ranch Road in Delray Beach, Florida, that it purchased in August 2024.

This story was updated to convey that the foreclosure sales have been canceled.