The Sheffield (322 West 57th Street)

1. BUILDING OVERVIEW (ANALYST FRAMING)

The Sheffield (322 West 57th Street) is a mature postwar resale condo originally built in 1978 and significantly converted/renovated in the mid-2000s. With 583 units across 50 floors, the asset is classified as Yield-Oriented (At Risk). While it outperforms the Hells Kitchen sub-market by 17.7% in absolute pricing, its post-sponsor behavior is characterized by mean-reverting appreciation and significant income leakage in the rental market. The building functions as a high-velocity rental factory (662 recorded rentals), but capital compounding is stalled, with many secondary trades occurring at or near sponsor-era baselines established over a decade ago.

2. UNIT MIX & COMPOSITION

Based on 861 recorded sales, the inventory is distributed as follows:

• Studio: 196 sales (~22.8% of activity). Median PPSF: $1,407.

• 1BR: 163 sales (~18.9% of activity). Median PPSF: $1,466–$1,594.

• 2BR: 169 sales (~19.6% of activity). Median PPSF: $1,660–$1,784.

• 3BR+: 63 sales (~7.3% of activity). Median PPSF: $1,716–$1,966.

Analysis: The building maintains a balanced mix of studios through 2BRs, which supports consistent rental liquidity. However, the extreme absorption friction in the 3BR+ sector (up to 363-439 days on market) creates a unit mix imbalance that subjects larger footprints to severe "leaked income" and exit liquidity risks.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

• Liquidity (Fastest Lines): The Line B (2BR) and Line F (2BR) stacks exhibit high relative resale velocity, with recent transactions clearing in 16 to 23 days.

• Price Strength: Lines U1 and T command the building's structural premiums, often exceeding $2,100 PPSF, though they suffer from the highest market friction.

• Appreciation: Compounding is anemic. For example, Line M (1BR) units purchased in 2012 for $1,559 PPSF resold in 2025 for $1,625 PPSF, a CAGR of ~0.3%. This significantly trails the NYXRCSA index, which stood at 331.14 in Oct 2025.

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

• 2007–2012: Sponsor-Driven Phase. Initial pricing was established at a high median baseline of ~$1,500 PPSF.

• 2013–2020: Flat/Cyclical. Pricing largely stagnated or mean-reverted, failing to capture broader market growth.

• 2021–2025: Stagnation. Recent sales cluster between $1,400 and $1,600 PPSF, nearly identical to 2012 levels, indicating zero real growth.

• Conclusion: Flat.

5. RENT CAPTURE ANALYSIS

• Mandatory Metric: Effective Annual Rent (EAR)

  • Unit 41M (2BR, 2025): Achieved $10,000. DOM: 7. EAR: $9,808.

  • Unit 33L (1BR, 2024): Achieved $4,500. DOM: 92. EAR: $3,365.

  • Unit 46H2 (3BR, 2024): Achieved $15,000. DOM: 263. EAR: $4,191.

  • Unit 28U (3BR, 2025): Achieved $13,500. DOM: 355. EAR: $369.

  Analysis: The building experiences catastrophic income leakage in the 3BR sector. While nominal rents appear high ($13k–$15k), absorption friction (DOM > 250) destroys the actual yield, resulting in effective rents that are up to 97% lower than face lease values.

6. B³ SCORING SYSTEM (0–100)

• Liquidity Score: 65 (Consistent overall velocity, but 85-day median DOM masks extreme friction in larger units).

• Rent Capture Score: 68 (Strong nominal rents are offset by massive vacancy leaks in the high-carry stacks).

• Appreciation Score: 45 (Resale CAGR is near zero; the building has failed to keep pace with the NYXRCSA benchmark over a 15-year horizon).

7. COMPOSITE SCORE & CLASSIFICATION

• Composite Score: 58.9

• Category: Yield-Oriented (At Risk)

• Justification: The building functions as a high-output rental factory (Pillar 2) with decent velocity (Pillar 1), but its failure to compound value (Pillar 3) and extreme rent leakage in large units place it in the "At Risk" category.

8. TRANSACTION EXAMPLES

Resale Appreciation (Nominal)

1. Unit 24V (Studio): $809,508 (2008) → $950,000 (2025). CAGR: 0.9%. Driver: Market regime timing.

2. Unit 27M (1BR): $1,247,356 (2012) → $1,300,000 (2025). CAGR: 0.3%. Driver: Sponsor price normalization.

3. Unit 43B (2BR): $1,875,000 (2013) → $2,420,000 (2025). CAGR: 2.1%. Driver: Market regime timing.

4. Unit 19C (1BR): $1,350,000 (2013) → $1,355,000 (2023). CAGR: 0.03%. Driver: Line-level premium persistence.

Resale Depreciation/Stagnation

1. Unit 54T (4BR): $7,076,837 (2013) → $5,750,000 (2025). Change: -18.7%. Driver: Unit size / unit mix imbalance.

2. Unit 28B (1BR): $1,130,257 (2008) → $980,000 (2011). Change: -13.3%. Driver: Market regime timing.

3. Unit 1001 (3BR): $6,900,000 (2021) → $4,350,000 (2025). Change: -36.9%. Driver: Liquidity shift (DOM change) [Note: Used as trend proxy].

4. Unit 48F (1BR): $1,290,000 (2015) → $900,000 (2024). Change: -30.2%. Driver: Sponsor price normalization.

9. RISKS & RED FLAGS

• Catastrophic Rent Leakage: 3BR+ units are a "dead zone" for income; with rental DOM exceeding 350 days, the carrying costs likely exceed the Effective Annual Rent.

• Appreciation Ceiling: Post-sponsor data confirms the building is mean-reverting. Resale buyers are consistently refusing to bid up units above 2012–2013 prices.

• Red Flag: Do not buy 3BR+ units (Lines T, U) as investment vehicles; the combination of extreme sale friction (439 days) and rental vacancy (355 days) destroys capital and yield.

10. EXECUTIVE SUMMARY

The Sheffield is a high-density Yield-Oriented asset that operates as a cash-flow engine for small units (Studios/1BRs) but remains a value-trap for larger footprints. While it provides a nominal pricing premium over Hells Kitchen, its Appreciation Score (45) highlights a total failure to compound capital relative to the NYXRCSA index over the last 15 years. Opportunity is strictly limited to high-velocity rental stacks (Line B, Line F), whereas the 3BR+ inventory suffers from chronic income leakage and severe exit liquidity friction, often sitting vacant or on the market for over a year.

B³ SCORECARD

• Liquidity Score: 65

• Rent Capture Score: 68

• Appreciation Score: 45

• Composite Score: 58.9

• Category: Yield-Oriented (At Risk)

• Unit Mix: Studio/1BR/2BR Dominant (~61.3% activity).

Disclosures: Approximately 250 transactions from 2007–2012 were reclassified as Sponsor-Driven due to the DOM ≤ 30/No Listing rule. This normalization reveals that true organic resale DOM is roughly 45% higher than aggregate building reporting, and actual CAGR is near-zero for 80% of lines. Effective Annual Rent calculations for Units 28U and 46H2 utilize the mandatory B³ vacancy adjustment.