Tr?id=566623520170033&ev=PageView&noscript=1

Silver Star Properties REIT Raises Concerns about Future Viability in SEC Filing

Posted on June 15th, 2023 at 8:59 AM
Silver Star Properties REIT Raises Concerns about Future Viability in SEC Filing

From the desk of Jim Eccleston at Eccleston Law 

Silver Star Properties REIT Inc., previously known as Hartman Short Term Income Properties XX Inc., has raised concerns about its ability to sustain operations in its latest quarterly report filed with the Securities and Exchange Commission (SEC).

The publicly registered non-traded real estate investment trust highlighted the possibility of facing difficulties as a going concern. According to the quarterly report filing, the company has a $259 million loan with an initial maturity date of October. 9, 2020. The loan provides for three successive one-year maturity date extensions that have all been executed.

On October 19, 2022, Silver Star received a notice from the loan servicer of the Single Asset Single Borrower (SASB) Loan indicating that an event of default had occurred. The default was due to non-compliance with the insurance requirements specified in the loan agreement for a particular property. However, it's important to note that the event of default had been previously waived so that Silver Star could exercise the final one-year extension option for the SASB loan term, according to DIWire.com. According to Silver Star, cash management implementation has restricted access to tenant receipts and limited the cash available to meet their operating obligations.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

1789490284 Law
September 15, 2026
FINRA Suspends Former Northwestern Mutual Broker Over Customer Loans

The Financial industry Regulatory Authority (FINRA) has suspended and fined a former Northwestern Mutual broker after he solicited two customers for loans to purchase another representative's book of business but instead used most of the money to pay personal expenses and other debt, according to an Acceptance, Waiver, and Consent (AWC) letter.<...

1789403905 Law
September 14, 2026
SEC Considers Expanding Retail Access to Private Markets

The Securities and Exchange Commission (SEC) is considering a proposal that could expand retail investors' access to private markets and allow investment advisers to charge performance fees to a broader group of clients.

1789155492 Law
September 11, 2026
SEC Considers Investor Test to Expand Accredited Investor Eligibility

The Securities and Exchange (SEC) Chairman Paul S.