How would value a NYC MF property with 36 units where 30 units are being delivered vacant (purposely, to allow buyer to renovate), and the remaining 6 are rent stabilized? Are cap rates/property values impacted from the upside potential of bringing rent stabilized units to market? You purchase a property for its future cash flows but since this barely has any how do you value it? Would you run a DCF and make adjustments for lease-up costs, capex, and estimated buyouts of the rent stabilized units?
Any input helps. Thanks