Silver Star Properties REIT Celebrates Remarkable Success in Self-Storage Transformation Strategy
In a notable achievement, Silver Star Properties REIT, Inc. is celebrating the successful turnaround of its subsidiary, Southern Star Self Storage. This transformation reflects the company's strategic shift towards high-demand self-storage facilities, taking place under the guidance of Oscar Flores, the Director of Operations. Over the past year, Southern Star has undergone a grassroots-driven transformation, leading to impressive improvements in occupancy rates, net operating income (NOI), and stronger community ties.
The operational statistics tell a compelling story. In Plano, Texas, the NOI more than doubled from $15,850 in the first quarter of 2024 to an outstanding $35,307 in the same quarter of 2025, while occupancy rates increased by over 4%. Furthermore, in Montrose, Colorado, the data reveals that NOI tripled from $16,967 to $52,370 during the same timeframe. Changes were also evident in George West, Texas, where occupancy improved significantly from 54.3% to 62.8%, marking a 9% increase under the new management model.
"We're extremely proud of the team's efforts in achieving such substantial improvements at our self-storage properties," said Gerald W. Haddock, Chairman and CEO of Silver Star. "Oscar's leadership has been both passionate and precise, producing results that reinforce our Executive Committee's decision to pivot our focus from underperforming office assets to resilient and high-demand self-storage investments."
The turnaround strategy, named the Neighborly Community Connect initiative, was launched in April 2024. It involved a comprehensive overhaul in management and marketing for Southern Star facilities. The strategy included removing third-party managers and installing trained professionals who are deeply integrated into the local communities they serve. Additionally, utilizing Silver Star’s expertise in reducing property taxes has contributed to achieving significant cost reductions. The results have been promising, with Southern Star reporting notable gains in local community engagement and engagement metrics.
Looking ahead, Silver Star is poised for further growth. Mr. Jim Shaw, an Independent Trustee, alongside Emerson Equity, LLC, is set to lead a $50 million preferred equity capital raise designed to fund the next phase of self-storage expansion. This initiative is contingent upon shareholder approval of the pivot strategy and aims to be launched within 90 days following a successful proxy vote. Key features of the proposed capital raise include defined preferred returns for accredited investors and a liquidity option through a 721 roll-up, allowing a tax-optimized conversion into Silver Star’s OP units. Emerson Equity will handle the offering as the managing broker-dealer.
"Partnering with Emerson Equity not only enables us to grow our self-storage footprint methodically but also allows us to align our operational goals with customary mortgage leverage, ultimately paving the way for a public listing that enhances liquidity and value for our shareholders," added Haddock.
Moreover, the transition strategy has led Silver Star to gain management control over several underperforming properties, including Virginia Parkway in McKinney, Texas, which has recently come under its direct management. Delray, Florida has successfully reached an impressive 92.5% occupancy, illustrating the impact of community-focused engagement efforts.
Mr. Shaw also addressed recent remarks from Allen Hartman regarding Silver Star's management of its properties, claiming that Hartman’s comments overlooked the widespread downturn in office values and usage. He highlighted the trend of companies moving from Class-B to Class-A properties, attributing it to declining rent prices. Overall, Haddock concluded, "We are committed to maximizing shareholder value, and this capital from Emerson is a strong endorsement of our management strategy, positioning us well for future growth and distributions."
This entire transformation, centered on strategic community engagement and proactive management practices, underscores Silver Star's commitment to revitalizing its self-storage operations and setting a robust foundation for future successes.
The operational statistics tell a compelling story. In Plano, Texas, the NOI more than doubled from $15,850 in the first quarter of 2024 to an outstanding $35,307 in the same quarter of 2025, while occupancy rates increased by over 4%. Furthermore, in Montrose, Colorado, the data reveals that NOI tripled from $16,967 to $52,370 during the same timeframe. Changes were also evident in George West, Texas, where occupancy improved significantly from 54.3% to 62.8%, marking a 9% increase under the new management model.
"We're extremely proud of the team's efforts in achieving such substantial improvements at our self-storage properties," said Gerald W. Haddock, Chairman and CEO of Silver Star. "Oscar's leadership has been both passionate and precise, producing results that reinforce our Executive Committee's decision to pivot our focus from underperforming office assets to resilient and high-demand self-storage investments."
The turnaround strategy, named the Neighborly Community Connect initiative, was launched in April 2024. It involved a comprehensive overhaul in management and marketing for Southern Star facilities. The strategy included removing third-party managers and installing trained professionals who are deeply integrated into the local communities they serve. Additionally, utilizing Silver Star’s expertise in reducing property taxes has contributed to achieving significant cost reductions. The results have been promising, with Southern Star reporting notable gains in local community engagement and engagement metrics.
Looking ahead, Silver Star is poised for further growth. Mr. Jim Shaw, an Independent Trustee, alongside Emerson Equity, LLC, is set to lead a $50 million preferred equity capital raise designed to fund the next phase of self-storage expansion. This initiative is contingent upon shareholder approval of the pivot strategy and aims to be launched within 90 days following a successful proxy vote. Key features of the proposed capital raise include defined preferred returns for accredited investors and a liquidity option through a 721 roll-up, allowing a tax-optimized conversion into Silver Star’s OP units. Emerson Equity will handle the offering as the managing broker-dealer.
"Partnering with Emerson Equity not only enables us to grow our self-storage footprint methodically but also allows us to align our operational goals with customary mortgage leverage, ultimately paving the way for a public listing that enhances liquidity and value for our shareholders," added Haddock.
Moreover, the transition strategy has led Silver Star to gain management control over several underperforming properties, including Virginia Parkway in McKinney, Texas, which has recently come under its direct management. Delray, Florida has successfully reached an impressive 92.5% occupancy, illustrating the impact of community-focused engagement efforts.
Mr. Shaw also addressed recent remarks from Allen Hartman regarding Silver Star's management of its properties, claiming that Hartman’s comments overlooked the widespread downturn in office values and usage. He highlighted the trend of companies moving from Class-B to Class-A properties, attributing it to declining rent prices. Overall, Haddock concluded, "We are committed to maximizing shareholder value, and this capital from Emerson is a strong endorsement of our management strategy, positioning us well for future growth and distributions."
This entire transformation, centered on strategic community engagement and proactive management practices, underscores Silver Star's commitment to revitalizing its self-storage operations and setting a robust foundation for future successes.
Topics Business Technology）
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