The listing agent did tell us she thought the seller still owed at least $168k, which appears to be mathematically feasible. 

Does this approach seem feasible, or is it a pipedream?

I think both  a 1-unit and a 2-unit project are structurally feasible.

I also provide market/feasibility studies for apartment developers.

PM or colleague request me to connect.I have some experience in property management with family-owned properties, and am experienced in finance & feasibility (commercial real estate finance day job). 

A few redevelopment opportunities have come up, but without a contact in the climate storage field I haven't been able to accurately gauge the feasibility of aconversion.

Depending on your market, I would also determine feasible concessions that you are able to give and if you are not going to hire a broker, then an above average commission could help as well.The name of the game for offices, especially struggling ones is going to be proper numbers.

Start showing as soon as feasible. 

He is great if your looking to get into development and feasibility studies, grow or expand your business, and even can give advice on raising capital.  

So far in the research I have done talking to local investors, it seems that only let-to-lets as well as student accommodation seems to be feasible in this rather expensive market.David