50% vacant multifamily property. What to offer?

[Kevin OBrien]

Good evening BP!

I found an off-market multifamily property. The owner said that it has been mis-managed by a property management team who was new and were not able to successfully stabilize the occupants and it has been at 50% for longer than the projections and business plan outlined. The owners have had multiple low offers that they do not respond to. The other multifamily comparables are closer to 95% occupied. There is probably no way to get the property based only on the current NOI and market cap rates.

My question is, how would you come up with an offer price? Where would you start with your offer? Would you use projections on increased occupancy and gross revenue?