We explore the world of asset class conversions with special guest Clint Harris, who specializes in turning empty big-box buildings (think old Kmarts and abandoned textile mills) into profitable self-storage facilities. Clint shares why changing consumer needs (especially among younger renters) is sparking new demand for creative reuse, and how savvy operators can use “cap rate arbitrage” to transform distressed properties at half the cost (and in a fraction of the time) compared to ground-up development. If you’re curious about office-to-multifamily flips, hotel conversions, or self-storage projects, this episode offers an inside look at the rewards and pitfalls of going beyond traditional real estate strategies.
Today’s Episode Takeaways:
– Why Conversions? How shifting consumer habits and vacant properties create “cap rate arbitrage.”
– Storage Boom: Millennials now make up 38% of self-storage users, transforming the classic “store your junk” model into a climate-controlled, in-and-out amenity.
– Key Metrics for Conversions: What operators look for in population density, traffic counts, and market rent comps to ensure profitability.
– Challenges & Pitfalls: How unanticipated change orders and extended timelines can sink a project if you lack the right experience or vertical integration.
– Beyond Self-Storage: From offices to hotels, RV parks to tiny-home villages—why any distressed asset can be repurposed with the right vision, team, and risk management.
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Disclaimer:
The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Remember that past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any of the advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast.
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