Very hard to strip down a purpose-built childcare and turn into a residential, with many large communal bathrooms, usually a lot of glass partitioning, unusual room configurations etc.
Yeah... no, in that case I would be looking to knock down & redevelop a multi townhouse type of thing. Remembering it is only a fall back position should it really become redundant for whatever reason. I have seen a few motels around the place being redeveloped, I guess due to multiple failed leases.
Quite a few seem to be modified houses anyway, they could not be that hard to convert. Mind you there are probably more $$$ in redevelopment if you get that right... small single level stuff is going like hot cakes around here, the boomers seem to be going that way.