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Silver Star Properties REIT's Strategic Move with CBIZ CPAs

In a significant development for the real estate investment trust sector, Silver Star Properties REIT, Inc. (referred to as Silver Star or the Company) has officially announced its engagement of CBIZ CPAs P.C. as its independent certifying accountant. This announcement marks an important step in the Company’s ongoing efforts to reposition itself within the real estate market, specifically toward the self-storage asset class.

The Engagement of CBIZ CPAs

On December 23, 2024, Silver Star finalized the formal engagement of CBIZ CPAs, a well-regarded public accounting firm that recently expanded its operations by acquiring Marcum LLP. This partnership focuses on conducting audits of the Company’s consolidated financial statements for the years ending December 31, 2023, and December 31, 2024.

Jack Tompkins, the chairman of the audit committee, expressed satisfaction with the conclusion of the engagement process. He noted, "We are very pleased to have successfully concluded the engagement process. We are now well positioned to complete our required filing obligations and such other filings as the Company may undertake which require the review or filing consent of our independent registered public accounting firm." This statement underscores the strategic direction the Company is taking to enhance its financial accountability and transparency.

Recent Property Dispositions

Silver Star has also been proactive in optimizing its asset portfolio through strategic property dispositions. Just days before the engagement announcement, on December 20, the Company completed the sale of the Northchase office property in Houston, Texas, fetching a sale price of $2.15 million. This was followed by the successful closure of the Atrium I and Atrium II office properties, which brought in $5.375 million.

Looking ahead, the Company has slated further property sales, with the Ashford Crossing office property set to close on January 10, 2025, at a contract price of $4.65 million. Moreover, another sale, the Commerce Plaza Hillcrest office property in Dallas, Texas is expected to conclude shortly after. Gerald Haddock, Executive Chairman and Chief Executive Officer, remarked on the disciplined approach to legacy asset dispositions and the execution of their New Direction Plan. He emphasized the importance of acquiring self-storage assets as part of their strategic realignment, stating, "Our disciplined approach to legacy asset dispositions and strategy for execution of our New Direction Plan is working. We firmly believe that we have and will continue to enhance our overall portfolio quality and deliver improved value to shareholders."

Net Asset Value (NAV) Insights

In addition to the audit engagement and property sales, Silver Star Properties REIT has communicated its net asset value (NAV) per common share. As reported to the Company’s transfer agent on December 20, 2024, the NAV was assessed at $2.01. This determination is crucial as it serves as a benchmark for evaluating the Company’s financial health and performance.

The NAV announcement has also been disseminated to financial advisors and custodians managing shareholder accounts, which demonstrates the Company’s commitment to transparency and investor relations.

Looking Forward

As Silver Star embarks on this new chapter in its strategy of transformation, the engagement with CBIZ CPAs is just one aspect of a broader initiative to strengthen its market position. The Company’s focus on reallocation towards self-storage assets reflects an adaptive approach amid changing market dynamics. Furthermore, with a clear vision articulated by its leadership, shareholders and stakeholders alike are encouraged to monitor their progress and the unfolding opportunities that lie ahead.

In conclusion, by engaging CBIZ CPAs and streamlining its asset portfolio, Silver Star Properties REIT is positioning itself for sustainable growth and enhanced shareholder value in the rapidly evolving landscape of real estate investment.