A property built on stilts that had virtually no flat scape, but to make it worse the stilts had the property nearly overhanging hwy 163,  You likely can figure out this property. 

The tenant is going to leave no matter what you say, so you should figure out how to let them go while ensuring there's no loss of income.I suggest you remind the tenant they are contractually obligated to pay rent and other costs until a new tenant is found.

Trying to figure out how to minimize the upfront costs for each door.  

If you can get gross development value then you can figure what the most you can pay to make the site pad ready, do vertical and still make a profit.

Let us know what you figure out, sorry to hear :(

I figure my options are to sell and take a loss (not ideal), or preferably find coverage that allows or doesn't care about the K&T.

Now, you need to figure out how to find deals and pay for them.

We dont know how many people it was marketed to. what are the actual sales figures. 

Plus trying to figure out and/or deal w/ damage on furniture is a nightmare.

At one time they were trying to figure out how  to finance a $10,000,000 roofing and siding project but got bogged down with attorneys and all the mess that goes along with a project that size.