In this episode of Modern Storage Unpacked, Modern Storage® sits down with Mike to go deep on one of the more distinctive projects in the Modern Storage portfolio — the conversion of a former skating rink in Hot Springs into a fully operational self storage facility. Adaptive reuse has become an increasingly relevant strategy in the self storage industry as ground-up construction costs remain high and available land in desirable markets continues to tighten. This project is a direct example of how operators and developers are finding value in existing structures that other buyers have overlooked.
The conversation starts where every conversion project should start — with the building itself. Evaluating an existing structure for self storage use is not a straightforward process. The Hot Springs skating rink brought with it a large open floor plate, which is often attractive for storage conversion, but also a set of questions around the building envelope, roof condition, slab integrity, utility infrastructure, and whether the existing layout could support a mix of unit sizes that would perform well in the local market. Modern Storage® and Mike break down the criteria they used to assess whether the building was actually a viable candidate before any serious capital was committed to the deal.
Beyond the physical structure, the episode covers the due diligence process that surrounds an adaptive reuse acquisition. Zoning and permitting are two areas where conversions can stall or fail entirely, and the Hot Springs project required navigating local regulatory requirements specific to changing the building's use classification. Mike discusses how the team approached those conversations with local authorities and what operators should expect when taking a non-storage building through the permitting process for the first time in a given municipality.
The construction and buildout phase of the conversion is another major focus of the episode. Unlike ground-up development where everything is built to spec from the start, conversion projects require constant problem-solving as hidden conditions reveal themselves during demolition and construction. Mike speaks to what the team encountered inside the Hot Springs building once work began, how those discoveries affected the project timeline and budget, and what contingency planning looked like in practice. For developers considering similar projects, this portion of the conversation offers a realistic view of what adaptive reuse execution actually involves.
The episode also touches on the market positioning side of the project. Hot Springs is a distinct market with its own demand drivers, and converting a building that many local residents recognized as a skating rink carries a community dimension that a new construction project would not. Modern Storage® and Mike discuss how the facility was positioned for lease-up, what the unit mix looks like, and how the finished product compares to what a ground-up build in the same market might have delivered in terms of features, pricing, and customer experience.
For storage operators, developers, and industry vendors, this episode is a practical case study in adaptive reuse done at the operator level. The Hot Springs conversion represents the kind of value-add opportunity that requires both analytical rigor and operational experience to execute well. Listeners will come away with a clearer framework for evaluating conversion candidates, a more realistic picture of what the buildout process involves, and a better understanding of how Modern Storage approaches non-traditional acquisitions as part of its broader growth strategy.
