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Hartman stepping down as CEO of his own REIT (eventually)

7,288 Views | 27 Replies | Last: 1 yr ago by Diggity
Diggity
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AG
There were some old school TexAgers that used to work for this guy. He sounded like a real *****, but interesting story nonetheless.

Quote:

Al Hartman, a conservative Houston-based CEO who filed lawsuits against masks and shutdown orders during the pandemic, named a successor of his real estate company Monday afternoon, though the timing of the changeover was unclear.


https://www.houstonchronicle.com/business/real-estate/article/Controversial-CEO-Al-Hartman-announces-successor-15714156.php

https://www.houstonchronicle.com/business/real-estate/article/Hartman-Hidalgo-Abbott-CEO-lawsuit-faith-covid-15613134.php
Mr07Ag
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AG
Would love to hear insiders stories. I heard that at least one major CRE firm would not show tenants his buildings after he shorted brokers commissions one too many times.
Diggity
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AG
I saw him speak at a few BizNow events, and let's just say this tidbit did not surprise me.

Quote:

He was in his 20s when he started selling siding door-to-door in Indiana,
Diggity
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AG
Here's one of the old threads. I actually glossed over the fact that the old Hartman REIT split and the other group formed Whitestone REIT. Shouldn't totally shock me as Jim is an odd duck himself.

That REIT was killing it for me pre Covid

https://texags.com/forums/38/topics/2548902/replies/57185282
TarponChaser
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Diggity said:

Here's one of the old threads. I actually glossed over the fact that the old Hartman REIT split and the other group formed Whitestone REIT. Shouldn't totally shock me as Jim is an odd duck himself.

That REIT was killing it for me pre Covid

https://texags.com/forums/38/topics/2548902/replies/57185282

That would be my former self in the linked thread.

I've have had recruiters reach out to me in the last couple years about coming back to Hartman and I wouldn't work for that guy again if I was bankrupt and my family was on the brink of starvation.

Which REIT was killing it for you? Whitestone or Hartman? Because in my experience Al Hartman made sure that he was the only one who killed it at his company.

I don't recall all the ins & outs but Al is on his second marriage these days. He and his Mrs. have been married for quite a while as his first marriage broke up before had kids. IIRC, there was some domestic violence involved and he was boozing. Maybe even drugs. This was when he was selling siding or whatever. Then his first wife left him and he got saved and became uber-churchy. When I worked there he lived right across Voss from Second Baptist and was the epitome of the sanctimonious, holier-than-thou a-hole.

When I worked there he tried to screw me on some commissions and use some Biblical verses as justification. Something about stuff belonging to the master or some weird ***** And I was not the only person he pulled that stunt with.

I don't regret working there because my direct boss couldn't stand Al and I learned a lot from him and it got me into commercial real estate while learning that Al was a total scumbag. I had lunch with a gentleman from another Houston CRE firm on Monday about a VP-Acquisitions role and in his words "if you said you liked Al Hartman I'd have to say you don't belong in our firm."

This move sounds like Al trying to shield himself from litigation because that Comical story says the change will take a while and Al is remaining chairman.
Diggity
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AG
WSR. Was a nice little stock with a 1% monthly dividend until retail fell off a cliff.

Jim Mastandrea (also on his second marriage) taught a class at Rice for a few years. Nice guy but a little strange. I liked their thesis at the time. I don't remember him ever mentioning Hartman, which was probably deliberate.
RustyBV
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AG
Al Hartman has the worst reputation in Houston commercial real estate, outside of Ali Chaudri (Jetall). Work with a few former Hartman employees and their stories are all the same: shorting commissions, re-trading deal terms, and changing terms after a tenant signs the lease.
Diggity
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AG
Yeah, Jetall always seemed slimy to me as well.

When I saw they bought up some of Stage's assets in Jacksonville, of all places, I was immediately suspicious of the whole bankruptcy,

this was an interesting article that I wasn't aware of

https://fbindependent.com/litigant-seeks-mistrial-citing-covid-p13940-1.htm
ChipFTAC01
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AG
How do you change terms after the tenant signs the lease. Like the tenant signs and then he crosses some stuff out before the LL signs?

I have one facility in a Hartman bldg. I don't think we've had too much trouble with them other than it just not being managed as well as we'd like.
TarponChaser
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ChipFTAC01 said:

How do you change terms after the tenant signs the lease. Like the tenant signs and then he crosses some stuff out before the LL signs?

I have one facility in a Hartman bldg. I don't think we've had too much trouble with them other than it just not being managed as well as we'd like.
That's exactly what he would do.

Al personally signed all leases for deals done in his properties and would take partially executed docs and go through the lease and try to change stuff and claim that his leasing people weren't authorized or approved to make those changes in the docs.
ChipFTAC01
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AG
Well I know now to go through the final docs with a fine toothed comb. We're up for renewal next year.
flyingaggie12
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AG
Wouldn't be a bad idea to redline the fully executed document.
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Diggity
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AG
Never heard of Clinton, but those are some ghetto-tastic communities he represents.

What about Justin Siegel at Boxer? Ivy League slumlords have to be fun to work for.
nosoupforyou
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AG
I graduated A&M in Dec 1998. My last month there I was searching the job boards and found a real estate company in Houston and chased after them.. worked hard to earn the right to work for... Al Hartman.

I was there almost a year (left to work for Bob Elberger at Concorde Realty Development).

All the stories above are true and another doozie He would do is only pay half of the invoice that was due... and only pay that after they came after us over and over. Hoping the company would give up I guess

He also had me bid some work, take the best bid and give it to the cheapest bid who then won. The guy with the best bid sued us and said I'll lose money if I have to, I'm going to get Al this time. I quit soon after because my name was getting trashed too

He uses the church to get investors and there's a lot of money at Second

Sad deal... and he was so mean and controlling to his 3 little girls..
Mikeyshooter
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AG
nosoupforyou said:

I graduated A&M in Dec 1998. My last month there I was searching the job boards and found a real estate company in Houston and chased after them.. worked hard to earn the right to work for... Al Hartman.

I was there almost a year (left to work for Bob Elberger at Concorde Realty Development).

All the stories above are true and another doozie He would do is only pay half of the invoice that was due... and only pay that after they came after us over and over. Hoping the company would give up I guess

He also had me bid some work, take the best bid and give it to the cheapest bid who then won. The guy with the best bid sued us and said I'll lose money if I have to, I'm going to get Al this time. I quit soon after because my name was getting trashed too

He uses the church to get investors and there's a lot of money at Second

Sad deal... and he was so mean and controlling to his 3 little girls..

Did you ever work with a guy named Dan Clayton? Interesting character.
nosoupforyou
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AG
I don't remember him.. Troy and Paul ran leasing and had some guys under them
TarponChaser
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nosoupforyou said:

I graduated A&M in Dec 1998. My last month there I was searching the job boards and found a real estate company in Houston and chased after them.. worked hard to earn the right to work for... Al Hartman.

I was there almost a year (left to work for Bob Elberger at Concorde Realty Development).

All the stories above are true and another doozie He would do is only pay half of the invoice that was due... and only pay that after they came after us over and over. Hoping the company would give up I guess

He also had me bid some work, take the best bid and give it to the cheapest bid who then won. The guy with the best bid sued us and said I'll lose money if I have to, I'm going to get Al this time. I quit soon after because my name was getting trashed too

He uses the church to get investors and there's a lot of money at Second

Sad deal... and he was so mean and controlling to his 3 little girls..

Sounds exactly like everything I recall from my brief time there.
nosoupforyou
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AG
he also had me working (happily I'll acknowledge)
- 7am to 7pm every day
- 8-12 on Saturday
- 1 Sunday afternoon per month.

64 hours per week plus 4 more on Sunday per month....and he paid me $30k annual salary for that and promised me $33k the next year and $36k the next.

sheesh..

I learned a lot from him though ( mostly what NOT to do)
MAS444
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AG
Curious about that too as I know a couple of people high up at Boxer.
TarponChaser
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MAS444 said:

Curious about that too as I know a couple of people high up at Boxer.

I've known a number of people with Boxer and the general vibe wasn't that they were sketchy like Hartman but that they focused on lower-class buildings with less sophisticated and glamorous tenants. I never had Boxer try to short me on a tenant rep deal like Hartman did.
Diggity
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AG
Back in the news.

Something about zebras and stripes comes to mind.

https://www.bisnow.com/houston/news/self-storage/silver-star-properties-chairman-accuses-reits-founder-of-mismanagement-illegal-meddling-121865
TarponChaser
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People like Al Hartman make one question the existence of a just and fair God.
Diggity
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AG
A previous poster does raise a good point about guys like Hartman abusing their networks/communities to get rich.

Sadly, I've known a few Aggies who did the same thing. Pisses me off.
Aggiemike96
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AG
I was on the audit team for Hartman's REIT. Oh the good times. I was low on the totem pole so I didn't interact with him.
TarponChaser
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Diggity said:

A previous poster does raise a good point about guys like Hartman abusing their networks/communities to get rich.

Sadly, I've known a few Aggies who did the same thing. Pisses me off.


I think that was me. If it wasn't I should have said it because he definitely hit up the folks at Second Baptist to invest with him. And the legal proceedings show he screwed them too.
nosoupforyou
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AG
It's amazing because when I worked for him in 1999, this was all known that he was a crook - yet he continued to do this behavior for 23 more years…

I got the job because he advertised at the A&M Career Center

Will he really get in trouble this time?

I can't read that article - requires login
[IMG]http://i.imgur.com/oezgsPJs.jpg[/IMG]
Diggity
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AG
it's free to signup, so just use a burner email if you are worried about spam.

Bisnow has a very solid morning newsletter if you're interested in local CRE happenings.
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