Office Conversion Permitting Review

Introduction

A real estate investment group was preparing to convert an existing office building into a multifamily asset. General contractor bids had been secured, and the permitting phase was set to begin. At this stage, the client engaged StrideArc to perform a final review of the development budget and permitting assumptions.

The objective was to validate fee structures, identify potential exposure, and ensure financial readiness ahead of submission.

Project Overview

● Client Type: Real Estate Investment Group

● Engagement Focus: Budget Review and Permitting Risk Identification

● Objectives: Validate permitting fee assumptions, identify potential financial exposure, and confirm alignment between project scope and municipal requirements prior to submission.

The Challenge

The client was preparing to file for permits on a planned office-to-apartment conversion. The development budget had been finalized, general contractor bids were in hand, and the project timeline allowed little room for delay. Internal reviews had already been completed, and the permitting team was moving toward submission.

“The risk wasn’t obvious. On paper, the budget looked solid. But one missed detail at this stage could have triggered delays and forced the entire team to reset.”

— Development Advisor, StrideArc

Although key permitting fees had been accounted for based on preliminary conversations with the city, the calculation methodology had not been independently verified. The client lacked a formal process to validate fee exposure by unit count, and the permitting milestone was approaching without time allocated for contingency review.

The Solution

StrideArc conducted a targeted review of the development budget with a specific focus on permitting fee assumptions. Each line item was compared against the city’s current published fee schedule, with particular attention given to categories that scaled by unit count or square footage.

“This wasn’t about identifying red flags. It was about verifying every assumption before those assumptions became filings.”

— Permitting Lead, StrideArc

The process included cross-referencing local ordinances, confirming departmental interpretations with city staff, and recalculating each impact fee using project-specific variables. Findings were documented and delivered to the project team for final validation prior to permit submission.

The Outcome

The permitting review identified a misapplied impact fee that would have created a material shortfall if left uncorrected. Because the discrepancy was flagged before submission, the development team was able to revise the budget, notify equity partners, and proceed without disrupting the project schedule.

Design coordination, financing structure, and permitting timelines remained intact. The client gained full visibility into actual soft costs, avoided downstream risk, and moved forward with greater internal and investor alignment.

Key Takeaways

The permitting review uncovered a material discrepancy prior to submission, allowing the development team to revise their budget and proceed without affecting schedule, scope, or financing structure.

● Budget validation revealed an unverified fee calculation tied to unit count

● Cost exposure was addressed before filing, avoiding rework or resubmittal

● Submission timing and design integrity were preserved

● Investor communications were proactive and grounded in updated assumptions

Ready for Permitting?

Final reviews are most valuable when nothing appears wrong. StrideArc supports development teams with targeted checks that verify assumptions before submission—minimizing risk without disrupting momentum.

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Permitting Review for Office-to-Apartment Conversion