Embattled Silver Star Files for Bankruptcy for Second Time

Silver Star Properties is back in bankruptcy proceedings after filing for Chapter 11 for the second time in four years.

The Houston-based real estate investment trust attempted a pivot from office space investments to self-storage amid a bruising battle between former CEO Allen Hartman and current CEO Gerald Haddock, but the clock has struck midnight once again. The company filed for Chapter 11 on May 28, according to Bisnow, and is in the process of preserving its assets.

Silver Star reportedly has $75 million in liabilities, compared to $100 million in assets. Four loans are in default, according to the outlet, and a foreclosure-bound self storage facility they own has a $5.75 million promissory note. Silver Star warned shareholders in a Friday update that the bankruptcy proceedings could wipe out any equity they stood to gain.

The REIT first filed for Chapter 11 bankruptcy in September 2023 as it tried selling off its 35-property office portfolio to chip away at $217 million in outstanding debt.

Fallout from the first bankruptcy proceeding plagues the company to this day. Silver Star accused its founder and former CEO, Allen Hartman, of mismanagement and ousted him from the company due to accusations that his mismanagement caused the company to default on a $259 million commercial mortgage-backed securities loan from Goldman Sachs, according to the publication. Hartman denied the allegations.

Hartman had sharp words for new Silver Star CEO Gerald Haddock in 2024, in the middle of the lawsuit storm.

“He’s evil. That’s how I view him,” Haddock said, as previously reported in The Real Deal. “The guy’s a madman. He’s a maniac. What else do you call someone who lies about me using the firm as a personal piggy bank?”

Company trustees sued Hartman for $50 million, alleging fraud and self-dealing. The lawsuit was followed by a Securities and Exchange Commission inquiry that began in February 2024. Silver Star’s board claimed that Hartman was trying to sabotage the company since he was shown the door. The case was settled in 2025 with a court order for Hartman to pay Silver Star’s legal fees, according to the outlet.

— Hunter Cooke