How to go about valuing large mall property in Mississippi?
Hi - I'm trying to think about how to get a ballpark valuation for a mall property described below. I unfortunately don't have any further detail, including NOI so it's difficult to just apply a cap rate. I'm also unsure how a mall property on a ground lease affects value versus a fully owned property, so I'm not sure how to think about comps. Anybody willing to share some advice?

&amp;#x200B;

\-Location: Gulfport, Mississippi, USA

\-591K SF

\-92.2% leased

\-ABR/SF: $12.15

\-Ground lease expiring 2033 with 25-year option to extend (currently being renegotiated)

\-Anchor tenants: Academy Sports, Barnes &amp; Noble, Belk, Burke's Outlet, Cinemark, Michaels, Ross Dress for Less,
[{"id": "hrow06o", "text": "Even with the 25 year extension, that ground lease expiration is going to be a bitch with only \\~36 years remaining. Most buyers of leased fees are going to want more security than that.\n\nYou are going to have to figure out a way to the Unlevered Cash Flow and assume an exceptionally high terminal cap rate. At the end of the day, the question is \"what return level would an investor need to feel comfortable owning this thing if the leaseholder decides they want the land back in the future.  \n\nGoing to be tough to get debt for this thing too i'd imagine.", "replies": [{"id": "hrp59ia", "text": "Thanks, that's really helpful. Since I'm trying to kind of think this through, just with some round numbers, $12.15 x 591 x 92.2% x \\~75% FCF margin gets to \\~$5M. Assuming it's 100% equity financed and requiring a 15% return with zero terminal value that's a \\~$33M NPV. 20% hurdle gets to \\~$25M. I'd imagine someone would be willing to finance some portion of it. And then trying to ascribe some optionality to a case where the ground lease can get renegotiated later on...am I totally off base with just trying to establish some kind of a floor valuation here?", "replies": [], "depth": 2}], "depth": 1}, {"id": "hrpl16o", "text": "Find out how much it'll take to tear it down and build apartments lol", "replies": [{"id": "hrukc5h", "text": "Or warehouses!", "replies": [], "depth": 2}], "depth": 1}, {"id": "hrpnhrw", "text": "I'm pretty sure my company appraised that property a little while back.", "replies": [], "depth": 1}, {"id": "hrsphz9", "text": "Use NOI to calculate purchase price. If you want 10%, work it backwards to see price that you would offer", "replies": [], "depth": 1}]