Episode Summary
Modern Storage® sits down with Mike to walk through the full conversion of Modern Storage®'s Hot Springs facility, a former local skating rink transformed into a modern self storage property. The episode covers how to evaluate an existing build for adaptive reuse potential, making it a practical listen for storage operators, developers, and vendors exploring value-add opportunities. If you are considering a conversion project, this episode breaks down the process from the ground up.
Adaptive reuse of existing structures like skating rinks can be a viable path to modern self storage development
Evaluating an existing build is a critical first step before committing to a conversion project
The Hot Springs facility serves as a real-world case study for operators and developers weighing value-add opportunities
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.
Common questions about the topics covered in this episode.
Converting an existing building into self storage starts with a thorough evaluation of the structure's physical characteristics, including ceiling height, floor load capacity, column spacing, and existing utilities. From there, the project moves through zoning and permitting, unit layout design, and construction of interior partitions, doors, and access systems. The complexity and cost of conversion depend heavily on how well the existing building aligns with storage use requirements before any work begins.
In many cases, adaptive reuse can be less expensive and faster than ground-up construction because the core structure, roof, and foundation are already in place. However, the actual cost advantage depends on the condition of the existing building and how much retrofitting is required to meet code and operational standards. Some conversions reveal costly surprises during due diligence, which is why a detailed building assessment before purchase or commitment is essential.
Buildings with large, open floor plans tend to be the strongest candidates for self storage conversion, including former retail stores, warehouses, manufacturing facilities, and recreational buildings like skating rinks or bowling alleys. The key factors are usable square footage, ceiling clearance, structural integrity, and whether the site can accommodate customer vehicle access. Zoning compatibility with self storage use is another critical factor that must be confirmed early in the evaluation process.
Investors should start by assessing the physical suitability of the building, including structural condition, ceiling height, and floor load, alongside local zoning regulations that permit self storage use. Market demand analysis for the surrounding area is equally important, since a well-converted facility in a low-demand market will still struggle to perform. Projected conversion costs compared to the stabilized asset value and comparable cap rates in the submarket will determine whether the deal pencils out.
A well-executed conversion can absolutely compete with ground-up facilities, especially when the building's existing structure lends itself to efficient unit layouts and good customer access. Modern storage operators are increasingly upgrading converted properties with the same technology, security systems, and climate control found in new builds. The customer experience at a converted facility is largely determined by the quality of the buildout and the management behind it, not the building's original use.
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