The Stop & Store Portfolio offers three well-maintained storage assets comprising 94,975 rentable square feet and 761 total units. The three facilities have a combined physical occupancy of 80.2 percent and economic occupancy of just 64 percent. The sites offer electronic gate access to ensure secure self-storage. There are portfolio-wide cash-on-cash returns of 11.0 percent and 14.8 percent in years one and two, in addition to leveraged IRRs of 21.3 percent and 20.8 percent in years five and seven. The subject properties have established a significant market footprint in three affluent regions of York County. The county comprises the York-Hanover, Pennsylvania Metropolitan Statistical Area, which consists of over 440,000 individuals.
The York & Dover facilities reside on approximately 7.43 total acres, offering a total of 50,705 rentable square feet. The York facility consists of 158 non-climate-controlled units ranging from 25 square feet to 450 square feet on approximately 0.98 acres of land. The Dover site offers 228 non-climate-controlled units ranging from 50 square feet to 300 square feet and 26 rental parking spaces for a total of 254 units on approximately 6.45 acres of land. The two sites offer a total of 412 units. The Properties have a combined physical and economic occupancy of 87.3 percent and 70.8 percent, respectively. Both facilities could further increase revenue by raising rental rates to meet the market average. The York and Dover properties offer a tenant insurance program for additional revenue. Average household income within three miles of the York facility exceeds $66,000, while the Dover property benefits from an average household income of over $80,000 within three miles.
The Dillsburg property consists of 348 storage units and one apartment across 44,270 rentable square feet on 2.90 acres of land. The facility has physical and economic occupancies 72.0 and 56.2 percent, respectively. Management currently collects additional income from tenant insurance and an on-site, two-bedroom apartment. An investor may benefit by raising the rental rates to meet the comparable average, as the Dillsburg facility currently offers rates below market. A robust average household income exceeding $100,000 within three miles of the property, supports further rent growth.
- Acquisition Secures Three Well-Maintained Storage Assets with a Significant Market Footprint in York County, Pennsylvania
- Portfolio-Wide Cash-on-Cash Returns of 11.0 Percent and 14.8 Percent in Years One and Two
- Projected Leveraged IRRs of 21.3 Percent and 20.8 Percent in Years Five and Seven
- Proforma Cap Rate of 7.93 Percent
- Average Household Income of Over $66,000 and $80,000 Within Three Miles of the York and Dover Sites
- Dillsburg Facility Benefits from an Average Household Income Exceeding $100,000 Within Three Miles
- Situated in the York-Hanover Metropolitan Statistical Area with Over 440,000 Individuals