| Factor |
Sell to a Developer |
Convert It Yourself |
| Capital at risk |
None — you receive a purchase price and exit |
Substantial — full conversion cost plus carry during construction and lease-up |
| Upside potential |
Limited to sale price — you do not participate in conversion profit |
Full conversion profit if the project succeeds |
| Expertise required |
None — your broker and attorney handle the transaction |
Significant — you need development, construction, and property management capability |
| Timeline to liquidity |
Months — typical investment sale timeline |
Years — conversion projects typically take 2–4 years minimum |
| Risk exposure |
Low — execution risk sits with the buyer |
High — construction cost overruns, permitting delays, lease-up risk, and interest rate exposure all remain with you |
| Access to 467-m |
The developer captures the incentive and reflects it in the price they offer you |
You capture the incentive directly — but you must meet all eligibility requirements |
| Best for which seller? |
Owners who want clean liquidity, have no development infrastructure, or want to redeploy capital |
Owners with development experience, existing construction relationships, and a long-term hold strategy |
Bottom line: Most building owners are better served by selling to an experienced developer than by attempting conversion themselves. The exception is an owner with a development track record who wants to capture the full conversion upside. For everyone else, the goal is to understand conversion potential well enough to demand it be reflected in the sale price.
