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The Plaza Residences (1 Central Park South)
The Plaza Residences is a Hybrid asset that functions more as a store of absolute value than a vehicle for capital growth. While it significantly outperforms its sub-market in absolute PPSF, its post-sponsor behavior is marked by zero-to-negative compounding and extreme income leakage. Rent capture is inconsistent, with larger units frequently remaining vacant for over six months. Opportunity is restricted to specific line-level premiums in the 2BR/3BR stacks, while the 1BR units have faced massive sponsor price normalization and loss of value over time.
One Manhattan Square (252 South Street)
One Manhattan Square is a high-density, Yield-Oriented asset that excels in nominal rent generation but fails to deliver capital compounding. Post-sponsor behavior shows a flat PPSF trend that has not kept pace with the NYXRCSA index since 2019. Income is effectively captured in the 1BR/2BR stacks, but the larger 3BR units suffer from extreme income leakage due to prolonged vacancy periods. The building’s high velocity (615 sales) ensures exit liquidity, but at the cost of price appreciation, making it an asset for cash-flow-driven investors rather than capital preservation.
The Atelier (635 West 42nd Street)
The Atelier is a high-velocity, Yield-Oriented building that serves as a Midtown rental factory but fails as a capital appreciation vehicle. Post-sponsor behavior is characterized by flat compounding and extreme rent leakage due to high vacancy periods (DOM). Investors capture high nominal rents, but the Effective Annual Rent is severely diminished by absorption friction. The building’s 14.1% underperformance relative to Hell's Kitchen confirms it is a mean-reverting asset where value is lost to time and oversupply.
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