Acquisition & Initial Position
Our Team supported Stop and Store Inc as it acquired three trading self-storage facilities in Dillsburg, York, and Dover, Pennsylvania. Moreover, because each facility sat within a 10-mile radius, the acquisition created a solid foundation for building a strong regional portfolio.
At the time of acquisition, the assets showed reactive management, a limited digital presence, and inefficient operations. In addition, staffing structures restricted profitability. The company then completed the acquisitions in stages over a six-month period.
Operational Restructuring
After the purchase, our Team led a comprehensive restructuring of operations. This approach aimed to unlock hidden value and drive greater efficiency:
- Remote Management: The team closed local offices and centralized operations. Management now runs remotely from British Columbia, Canada.
- Cost Reduction: The team cut overheads by eliminating unnecessary staffing and optimizing property-level expenses.
- Digital Marketing & Pricing: The team boosted online visibility to capture market demand. They also applied an aggressive pricing and revenue management strategy, including systematic rate increases.
Dover Storage
Efficiency & Staffing
Given the proximity of the three facilities, a unified operational process was established. Part-time staff members were engaged to provide cleaning, security checks, lock audits, and light maintenance across the portfolio.
This streamlined model reduced staffing requirements from three full-time employees to the equivalent of 1.5 part-time roles, delivering substantial operational savings while maintaining service quality.
Financial Performance
The repositioning strategy quickly delivered measurable improvements:
- Revenue Growth: Enhanced pricing and marketing generated stronger top-line performance.
- NOI Optimization: Cost reductions and operational efficiencies improved profitability.
- Portfolio Value: Once NOI targets were achieved, the assets were packaged as a portfolio, improving their appeal to strategic buyers.
Exit
In May 2020, the three-store portfolio—comprising 95000 net rentable square feet—was sold for $5.2 million to Ideal Property Group, a New York–based investment firm.
The portfolio offered broad suburban York County coverage, including frontage along US Route 15 and strong infill positioning near York city. The sale was completed against the backdrop of rising investor appetite for self-storage, accelerated by pandemic-driven migration and home reconfiguration trends.
The transaction delivered strong returns for Stop and Store Inc within the targeted 3–5 year investment horizon.
York Storage
Key Takeaways
- Leveraging operational restructuring and digital-first marketing strategies can unlock significant hidden value in under-managed assets.
- Regional clustering enabled economies of scale, driving efficiency across the three stores.
- Timing the exit during heightened market demand maximized returns and provided an attractive outcome for both seller and buyer.
