Stock prices for Cincinnati-based retail giant Macy's took a hit recently after the company reported tepid Q2 earnings. Even so, Orange Peel Investments analyst Parke Shall said Macy's will continue to look good to investors, partly on the strength of its real estate holdings.

"The stock is actually approaching levels that we believe are going to have private equity firms running far more comprehensive valuations on what the company may be worth due to its real estate moving forward," Shall wrote in Seeking Alpha.

Some soon-to-close Macy's locations already have repurposing plans in the works. Shall said Macy's real estate is worth between $10B and $20B — a wide range, but roughly in line with estimates by former activist investor Starboard Value.

While the retailer is going to take hits in the near future as its earnings decline (like most department stores), share prices will eventually rebound on the strength of its real estate holdings, plus cash on hand, Shall said.

Macy's reported earnings of 48 cents per share Aug. 11. That was two cents more than analysts predicted, but even so the company's sales fell for the 10th straight quarter.