Erez Law is currently investigating brokers nationwide who recommended their clients invest in Silver Star Properties, a non-traded real estate investment trust (REIT).
Silver Star Properties owned 44 commercial properties in Texas, which are reportedly worth millions of dollars.
Just like other non-traded REITs, Silver Star Properties is an illiquid investment that does not trade on the public securities exchange and is subject to extreme market volatility. Due to its illiquid nature, many investors are unable to sell the investments. Additionally, it generates higher than normal commissions for brokers who recommend it, which is perhaps one reason that brokers recommend this investment to their clients.
Silver Star Properties and other non-traded REITs are suitable for investors who are looking for long-term investments and a higher risk tolerance.
Hartman SPE LLC faced struggles, including the company’s management failure, tenant and cashflow issues, allocation of resources, and delayed SEC filings.
In September 2023, Hartman SPE LLC, an indirect subsidiary of Silver Star Properties, filed for Chapter 11 bankruptcy. Hartman SPE LLC is seeking to refinance and shift its asset class to pay creditors. As a result of the bankruptcy filing, Silver Star Properties has suspended distributions to investors. Additionally, it is likely that investors will lose their principal investment as a result of the Hartman SPE LLC bankruptcy filing.
The Securities and Exchange Commission (SEC) is investigating allegations of violations of fiduciary and other duties to Silver Star by Hartman SPE LLC.
Silver Star Properties Non-Traded REIT Investment Loss Options
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokers across the country may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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