Shoping Center Could This Work?

Im looking at a 50000 sq.ft retail and office center. The place is in what I believe to be a good location 10% population growth.
structures are in good condition no major repairs needed.
proforma cap rate is 12% proforma NOI is $324000
2004 apraisal on the property is $3,400000 owner is asking $2,700000.
Here is th problem. Property is currently running at 50% occupancy. current cap is 6% with $167000 NOI
I believe the high vacancy is due to the property being under managed.
since the property is priced more than 20% under apraised value, I think this may be a possible no money down deal?
My thinking is, I could take out a loan for 100% of purchase price ($2,700000) $1,million with a 10 year balloon. This should get my monthly mortgatge payments low enough to cover expenses and prevent any negative cash flow until I can get better managment in place and get the occupancy rate and net operating income up.
Would this work? Or even be possible? or is there a better way. Im a newbie just looking for direction HElP!
Any advice from you pros would be greatly appreciated.

Well there is a mistaken assumption here. The mistaken assumption is that you can borrow against a value that doesn't actually exist yet. The 2004 appraisal is either old news (I assume that some tenants left to explain the loss of income) or its a pro-forma on what the property would be worth if it were full.

Quite frankly 20% off the pro-forma value isn't enough discount here.

All well and good to think the property is under-managed but do you have an actual plan for new tenants? And how are you going to cover the carry and the cost of Tenant improvements to get the place leased up?

Thanks for bringing that to my attention King! Guess it was my residential investing mentality trying to kick in on that appraisal.
I do have a couple good, recent comps. and I feel like the old appraisal may actually be in the ball park. I guess my lender would require a current appraisal and that will tell the real story.
My plan was to try for a loan for 80% of the appraised value. If it turns out the property is worth the $3,460000
and assuming th owner will not budge and I pay $2,700000

3,460000 - 20%= $2768000 My plan is to leave closing with $68000.00 for tenant rebuilds and an aggressive local advertising campaign geared toward new and exsisting bussiness in the area.
What do you think? I appreciate your input very much! I have very little experiance with commercial property and I certainly need all the guidence I can get.

which lenders will lend on 80% LTV based on an appraisal value? my understanding is that even if the appraisal value comes in at 80% LTV of the purchase price, you still have to come up with another 10% of your own cold hard cash.