Please explain what the "40% leased rates" valuation procedure involves. That wording sounds to me like a valuation based on 40% occupancy, which would normally be conservative. Even if a building is vacant, it should not be valued at zero, unless you know it will remain vacant forever. However, I assume that there is something else going on here, judging from the context of your message.
As I have said repeatedly here, I am not assuming that book value, cash flow, or income statements coming out of PZN management are accurate, but they are all we have to go on. Your information is useful and I appreciate your constructive input.