Hey all. Just an update - Epic have processed the 4.16 update so now you can create a new project under 4.16 via the launcher if you own the Multiplayer Survival Game Template 
Please note that if you already have your launcher open, you may need to restart it in order for this option to appear. If you run into any issues using the template under 4.16, please be sure to let me know! Cheers!