Grandstone Investment Sales is pleased to present the Backyard State Storage Portfolio, comprising French Creek Storage (117 units, 30,925 NRSF, Saegertown, PA) and Backyard State Storage (449 units, 74,300 NRSF, Conneaut Lake, PA), totaling 566 units across 105,225 NRSF. The portfolio features substantial scale, diversified unit types, and strong operational upside, creating a compelling value add opportunity.
Both properties exhibit high physical occupancy—94.39% at French Creek and 87.90% at Backyard State—while economic occupancy lags, creating immediate upside through disciplined revenue management, scheduled rent increases, mark-to-market rent adjustments on below market units, improved tenant retention, and more efficient collections. Additional upside exists through continued occupancy stabilization, lease-up of remaining vacant units, and targeted rate optimization across underperforming segments.
The portfolio offers a strong income profile with a current blended cap rate of 5.55%, projected to expand to 8.30% by Year 5. Supported by $1.34M in gross potential rent and a current net operating income of $666K, the State Storage Portfolio demonstrates stable in-place cash flow alongside clearly identifiable near-term income growth drivers. NOI is projected to increase from $857K in Year 1 to $996K by Year 5, driven primarily by rent increases on existing tenants, occupancy gains at Backyard State Storage, and gradual conversion of economic occupancy into realized income.
Situated in resilient Pennsylvania markets with limited climate-controlled competition, this portfolio represents a rare opportunity to acquire high-quality self-storage assets with immediate cash flow stability and a defined path to enhanced income through rent growth, occupancy improvements, and operational efficiency gains.
INVESTMENT
HIGHLIGHTS
- IMMEDIATE REVENUE CAPTURE
Closing the 23% gap between physical and economic occupancy via online leasing platforms and automated management systems unlocks substantial trapped cash flow without requiring major structural changes. - RAPID NOI AND YIELD EXPANSION
Projected Year 1 NOI growth from $857,440 to $995,801 across the portfolio drives strong revenue momentum, expanding blended cap rates from 5.55% to over 7.83% by Year 2. - LEAN, SCALABLE OPERATIONS
The 25-mile proximity enables shared management, maintenance, and operational efficiency across the portfolio.
- STRONG MARKET DEMOGRAPHICS
The portfolio is located in Western Pennsylvania
markets with stable household growth, rising
incomes, and strong self-storage demand, supported
by limited climate-controlled supply. - PORTFOLIO STABILITY & UPSIDE
88.85% physical occupancy and 65.54% economic
occupancy provide stable income with clear upside
from below-market rents and market rent growt - STRONG RENTAL UPSIDE
Total rental income grows from $882,683 to
$1,280,537 over the hold period, driven by sustained
rent increases and declining economic vacancy,
reflecting meaningful embedded mark-to-market
Brian Brockman | Pennsylvania Inc | Bor@bangrealty.com | License: RM432816
