75 Wall Street

1. BUILDING OVERVIEW (ANALYST FRAMING)

75 Wall Street is a mature postwar resale condo, originally built in 1987 and converted in 2008. With 347 units across 36 floors, it is a large-scale asset in the Financial District. Based on post-sponsor behavior, the building is classified as Yield-Oriented (At Risk). While it maintains an absolute price lead over its sub-market (outperforming the Financial District by 6.9%), its capital performance is characterized by a mean-reverting trend where current resale pricing is frequently regressing toward 2009–2012 sponsor baselines. The building functions as a high-churn rental factory, but significant "income leakage" occurs in larger units due to high absorption friction (DOM).

2. UNIT MIX & COMPOSITION

Based on 455 recorded sales and 483 rental transactions, the inventory is heavily weighted toward smaller footprints.

• Studios: ~169 sales (~37% of activity). Median PPSF: $1,327.

• 1BR: ~158 sales (~35% of activity). Median PPSF: $1,223–$1,296.

• 2BR: ~111 sales (~24% of activity). Median PPSF: $1,190–$1,367.

• 3BR+: ~9 sales (~2% of activity). Median PPSF: $1,346–$1,474.

Analysis: The building's high concentration of Studios and 1BRs (~72% of activity) creates high rental liquidity but also significant price volatility in the resale market, as these units face the most competition from nearby new development.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

• Liquidity (Fastest Lines): Line J and Line L (Studios) exhibit the highest frequency of trade, though the building-wide median DOM of 120 days indicates significant transaction friction compared to the broader Manhattan market.

• Price Strength: Line PH (Penthouses) and Line M/N/O (3BR+ combinations) command the highest structural premiums, with median PPSF reaching $1,438–$1,507.

• Appreciation: Compounding is near-zero or negative in several lines. For example, Line D (Studios) traded at $1,173 PPSF in 2013 and resold at $1,070–$1,107 PPSF in late 2025, representing a negative CAGR over 12 years. This significantly underperforms the NYXRCSA index, which reached 331.14 in Oct 2025.

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

• 2008–2013: Sponsor Establishment Phase. Pricing was established between $900–$1,200 PPSF.

• 2014–2018: Peak Cyclical Phase. Pricing peaked between $1,500–$1,800 PPSF.

• 2021–2025: Mean-Reversion Phase. Recent trades (e.g., Unit 24R at $870 PPSF and Unit 29M at $884 PPSF in 2025) indicate the building is returning to its 2009 price floors.

• Conclusion: Cyclical / Mean-Reverting.

5. RENT CAPTURE ANALYSIS

• Mandatory Metric: Effective Annual Rent

  • Unit 30M (2BR, 2025): Achieved $7,495. DOM: 125. Effective Rent: $4,928.

  • Unit 30B (1BR, 2025): Achieved $5,500. DOM: 98. Effective Rent: $4,023.

  • Unit 23L (Studio, 2024): Achieved $3,100. DOM: 5. Effective Rent: $3,057.

  • Unit 18N (1BR, 2023): Achieved $4,700. DOM: 180. Effective Rent: $2,382.

  Analysis: The building captures income efficiently in small units (Studios) with low DOM. However, larger units suffer from massive income leakage (30% to 50%), where high absorption friction (DOM > 100) destroys annual yields.

6. B³ SCORING SYSTEM (0–100)

• Liquidity Score: 55 (High historical volume but significant resale friction; median DOM of 120 days indicates exit resistance).

• Rent Capture Score: 60 (Strong nominal rents are consistently eroded by long absorption periods for 1BR and 2BR units).

• Appreciation Score: 40 (Resale pricing is regressing toward 2009 baselines, failing to compound relative to the NYXRCSA index).

7. COMPOSITE SCORE & CLASSIFICATION

• Composite Score: 51.25

• Category: Yield-Oriented (At Risk)

• Justification: The building functions primarily as a rental engine, but the combination of high "income leakage" and stalled capital appreciation places it in the "At Risk" segment.

8. TRANSACTION EXAMPLES

Resale Appreciation (Nominal)

1. Unit 36H (1BR): $1,051,456 ($1,296 PPSF) in 2009 → $1,100,000 ($1,356 PPSF) in 2014. +4.6% (+0.9% CAGR). Driver: Sponsor price normalization.

2. Unit 31G (1BR): $970,000 ($1,485 PPSF) in 2009 → $1,100,000 ($1,684 PPSF) in 2016. +13.4% (+1.8% CAGR). Driver: Market regime timing.

Resale Depreciation/Stagnation

1. Unit 29L (Studio): $684,570 ($1,552 PPSF) in 2018 → $620,000 ($1,405 PPSF) in 2025. -9.4%. Driver: Market regime timing.

2. Unit 31R (Studio): $1,067,654 ($1,056 PPSF) in 2013 → $940,000 ($1,014 PPSF) in 2024. -11.9%. Driver: Liquidity shift (DOM change).

3. Unit 20M (2BR): $1,348,163 ($1,083 PPSF) in 2009 → $1,300,000 ($1,045 PPSF) in 2021. -3.5%. Driver: Unit size / unit mix imbalance.

4. Unit 32D (Studio): $892,540 ($1,336 PPSF) in 2014 → $825,000 ($1,235 PPSF) in 2024. -7.5%. Driver: Sponsor price normalization.

9. RISKS & RED FLAGS

• Chronic Sale Friction: Median resale DOM of 120 days (and up to 479 days for certain 1BR lines) suggests a high risk of illiquidity for sellers.

• Extreme Rent Leakage: 1BR units like 18N (180 DOM) lose nearly half their potential income to vacancy.

• Red Flag: Do not buy the Line D (Studios) or Line N (1BRs) for capital growth; these lines have shown the most consistent price erosion and high absorption friction over the last decade.

10. EXECUTIVE SUMMARY

75 Wall Street is a Yield-Oriented (At Risk) asset that serves as a high-density rental factory but fails as a capital preservation vehicle. While the building maintains an absolute price lead in the Financial District, its behavior is mean-reverting, with 2025 resales frequently clearing at prices seen in 2009–2010. Income is frequently "leaked" rather than captured, with larger 1BR and 2BR units often sitting vacant for 3–6 months between leases. Opportunity is limited to low-DOM studio rentals, while the primary risk is concentrated in the 1BR stacks where capital has failed to compound for over 15 years.

B³ SCORECARD

• Liquidity Score: 55

• Rent Capture Score: 60

• Appreciation Score: 40

• Composite Score: 51.25

• Category: Yield-Oriented (At Risk)

• Unit Mix: Studio/1BR Dominant (~72%)

Disclosures: Approximately 142 transactions from 2008–2013 (including Units 27K, 25K, and 28R) were reclassified as Sponsor-Driven per the 30-day DOM/No Listing rule. This normalization revealed that true organic resale DOM is significantly higher than early-cycle aggregate reporting suggested, and actual CAGR is flat-to-negative for the majority of lines.