Silver Star unit Hartman exits bankruptcy with $135 million new loan

By Sarah Lizee

Olympia, Wash., March 28 – Silver Star Properties REIT, Inc. indirect subsidiary Hartman SPE, LLC closed a $135 million exit facility on Wednesday, allowing its Chapter 11 plan of reorganization to go into effect on Thursday, according to a press release.

Benefit Street Partners provided $120 million with RMWC providing $15 million of the exit facility.

The exit facility will fund the company’s Chapter 11 plan, which was confirmed on Feb. 26 and provides for payment in full to all unsecured creditors and tenants and the full reinstatement of all interests without impairment.

The company said the closing of the exit facility paves the way for it to complete its shift into the self-storage sector where Silver Star expects to have about $370 million in available funds, assuming a loan-to-value ratio of 50%, for the company's investment strategy.

As of Dec. 31, Silver Star owned 33 commercial properties comprising about 4.6 million square feet located in San Antonio, Richardson and Houston, Tex.; including a 97.53% interest in an affiliate special purpose entity which owns office, retail and light industrial properties in Texas, plus two self-storage facilities located in Houston and one retail pad site development.

Silver Star is a self-managed real estate investment trust based in Houston. Hartman SPE filed bankruptcy on Sept. 13, 2023 under Chapter 11 case number 23-11452.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.