SEC launches investigation into Silver Star Properties
Embattled real estate firm Silver Star Properties offloaded a suburban Dallas retail property as part of an effort to liquidate its legacy assets.
The Houston-based company sold Richardson Heights for $40.5 million to JAH Realty, which is based in Oklahoma, according to SEC filings. The 200,000-square foot shopping center hit the market in March 2023, the Dallas Morning News previously reported. The price comes to a little over $202 per square foot.
Developers Lindsay Embrey and George Underwood opened Richardson Heights, at 100 South Central Expressway, in 1956 after purchasing a swath of farmland along U.S. Route 75.
The center’s tenants include T.J. Maxx, Party City and Alamo Drafthouse. This location of Alamo Drafthouse was one of six that shuttered abruptly when the franchise owner filed for Chapter 7 bankruptcy in June. Sony Pictures Entertainment purchased Alamo Drafthouse and plans to reopen the locations.
Former Silver Star CEO Alan Hartman bought Richardson Heights in 2010.
Under the leadership of its co-CEO Gerald Haddock, the firm is trying to bounce back after filing for bankruptcy last summer. The company has also been embroiled in a legal battle with Hartman.
Hartman was fired by the company’s board after allegations of mismanagement came to light. The board’s laundry list of accusations against Hartman include: taking out loans without approval, misleading the board about Silver Star’s financials and nepotism involving his daughter Margaret Hartman.
After he was fired, Hartman continued to sabotage the company, the board alleged.
In February, the SEC opened an inquiry into the firm. On June 17, a judge in Baltimore City Circuit Court denied Hartman’s attempt to liquidate Silver Star.
Part of the effort to address the firm’s financial woes involves Silver Star’s pivot to self-storage. Silver Star once had a 7 million square foot portfolio of office, retail and industrial real estate.
A subsidiary of the firm sold a Richardson office building in January. California-based investor Avistone LLC purchased Central Park Business Center at 1900 Glenville Drive for $6.6 million. The cost of the 108,000-square-foot property came out to about $61 per square foot.
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