11 Beach Street
1. BUILDING OVERVIEW (ANALYST FRAMING)
Building Type: Luxury Condo (2016 Conversion of a 1910 Loft Building).
Scale: 27 Units, 10 Floors.
Classification: Yield-Oriented
Justification: 11 Beach Street defines the "Yield-Oriented" classification through a stark divergence between income generation and asset value retention. While the NYXRCSA benchmark index climbed to 330.28 by Nov 2025, indicating a robust broader market, long-term owners at 11 Beach have struggled to realize capital gains. Post-sponsor analysis reveals that units held from the 2017–2018 launch through 2025 often trade flat or at a loss (Driver 5: Sponsor Price Normalization). For example, Unit 9A sold in 2018 for $8.425M and resold in May 2025 for $8.400M—zero nominal gain over seven years. However, the building is a rental powerhouse, with large-format units commanding $18,000–$30,000/month and achieving gross yields of 5.5%–6.0% on resale basis.
2. UNIT MIX & COMPOSITION
Inventory based on transaction history.
Studio/1BR/2BR: Negligible. The building is structurally committed to large formats.
3BR: Significant share (~12+ recorded sales). Lines like B and C (e.g., ~2,361–3,191 SF).
4BR/5BR: Dominant Inventory. Includes Lines A and D (~3,400–3,800+ SF) and Townhouse/Penthouse units.
Analysis: The building is composed almost exclusively of "Supersized" units (2,300+ SF). This creates a "Keyhole Liquidity" profile (Driver 4: Unit Mix Imbalance). Unlike buildings with liquid 1BRs, 11 Beach relies entirely on the thin market of $5M–$10M buyers. When demand dries up (as seen in 2020), prices crash violently (e.g., THA dropping from a $12M valuation context to a $6.5M sale).
3. LINE (STACK) PERFORMANCE — RESALE ONLY
A. Liquidity (2023–2025 Resale Data) Recent liquidity has improved but remains volatile.
Fastest Lines: Unit 7A (23 days - 2022), Unit PHA (25 days - 2023).
Moderate/Slow Lines: Unit 9A (78 days - 2025), Unit 5C (94 days - 2025), Unit 3A (302 days - 2022).
B. Price Strength
Sponsor Basis (2016–2017): ~$2,100–$2,300 PPSF (e.g., 6A sold $2,264 PPSF).
Trough Basis (2020–2021): ~$1,050–$1,500 PPSF (Distressed trading period).
Current Resale Basis (2025): ~$2,160–$2,600 PPSF.
Observation: 2025 pricing has finally mean-reverted to 2017 levels, meaning the building has had zero structural appreciation over an 8-year cycle while the NYXRCSA index grew.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
2016–2018 (Launch): ~$2,200 PPSF. High premium pricing.
2020–2021 (Correction): ~$1,000–$1,900 PPSF. Severe drawdown during the pandemic for large units.
2024–2025 (Recovery): ~$2,100–$2,600 PPSF.
Conclusion: Cyclical / Mean Reverting. The building has recovered from its lows but has failed to compound value beyond its initial sponsor pricing.
5. RENT CAPTURE ANALYSIS
The building excels here, attracting high-net-worth tenants needing massive space.
A. Rent Capture Metrics
Unit 3B (3BR): Rented Jan 2024 for $18,000/mo ($91/SF).
Yield Context: Purchased Aug 2022 for $3.525M.
Gross Yield: 6.1% (Elite for Tribeca).
Unit 6C (4BR): Rented Feb 2024 for $30,000/mo ($112/SF).
Unit 7B (3BR): Rented Sep 2024 for $22,750/mo ($115/SF).
B. Rent Appreciation
Unit 3B Trend:
Nov 2020: Rent likely lower (Asset sold for $3.16M).
Aug 2022: Rented $20,000.
Jan 2024: Rented $18,000.
Growth: Negative/Flat recently, likely due to seasonality or market softening for large rentals.
6. B³ SCORING SYSTEM (0–100)
Liquidity Score: 50
Speed: Volatile. While PHA sold in 25 days, Unit 3A took 302 days.
Depth: Very low transaction volume (only ~3-4 sales per year).
Rent Capture Score: 88
Efficiency: Strong. Rents consistently hit $90–$115 PSF.
Yield: 5%–6% yields are excellent for the neighborhood and price point.
Appreciation Score: 20
Magnitude: Poor. Long-term holds (7+ years) are showing 0% nominal gains (Unit 9A).
Durability: Extremely sensitive to market regimes; 2020 saw 40-50% drops in PPSF.
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score: (50 × 0.35) + (88 × 0.30) + (20 × 0.35) = 50.9
Category: Yield-Oriented
8. TRANSACTION EXAMPLES
Resale Depreciation / Flat Performance (Driver: Sponsor Price Normalization)
Unit 9A (3BR, 3,888 SF) — THE LOST DECADE
Bought (Resale/Sponsor-proxy): $8,425,000 (Nov 2018).
Sold (Resale): $8,400,000 (May 2025).
Result: -0.3% Loss (Held 6.5 years).
Driver: Sponsor Price Normalization. The 2018 price was a ceiling the market hasn't broken.
Unit 3A (4BR, 3,844 SF)
Bought (Sponsor): $7,750,000 (Asking Feb 2019, sold $6.76M). Note: 2019 sale was $6.76M.
Sold (Resale): $6,350,000 (Nov 2022).
Result: -6.0% Loss (Held 3.5 years).
Driver: Market Regime Timing (Exiting in rising rate environment).
Unit THB (3BR, 4,752 SF)
Bought (Resale): $6,275,000 (Jun 2021).
Sold (Previous): $5,001,675 (Nov 2020).
Context: This unit saw volatility, but the 2021 price was significantly below original building averages ($1,320 PPSF vs $2,200 avg).
Unit 7A (5BR, 3,844 SF)
Bought (Resale): $7,978,540 (Jun 2018).
Sold (Resale): $7,450,000 (Dec 2022).
Result: -6.6% Loss (Held 4.5 years).
Driver: Sponsor Price Normalization.
Resale Appreciation Examples (Driver: Market Regime Timing / Distress Flips)
Unit 6B (3BR, 2,361 SF) — THE SUPER FLIP
Bought: $2,600,000 (May 8, 2024).
Sold: $5,300,000 (Jun 17, 2024).
Result: +103% Gain (Held 1 month).
Driver: Liquidity Shift / Distress. The May sale ($1,101 PPSF) was likely a distressed asset or off-market anomaly; the June sale ($2,244 PPSF) marked the correction to fair market value.
Unit 3B (3BR, 2,361 SF)
Bought (Resale): $3,164,325 (Nov 2020 - Pandemic Low).
Sold (Resale): $3,525,000 (Aug 2022).
Result: +11.4% Gain (Held <2 years).
Driver: Market Regime Timing (Buying the dip).
Unit 2D (5BR, 3,479 SF)
Bought (Sponsor): $6,771,362 (Apr 2017).
Sold (Resale): $8,000,000 (Sep 2025).
Result: +18.1% Gain (Held 8 years).
CAGR: ~2.1% (Low growth compared to NYXRCSA index).
Driver: Long-term hold allowing recovery.
Unit THA (4BR, 6,163 SF)
Bought (Resale): $6,500,136 (Nov 2020).
Sold (Resale): $6,750,000 (Apr 2021).
Result: +3.8% Gain (Held 5 months).
Driver: Market Regime Timing (Quick flip off the bottom).
9. RISKS & RED FLAGS
The "Sponsor Ceiling": Be highly cautious of paying above $2,200 PPSF. History shows that units bought above this level in 2017–2018 have struggled to resell for a profit even 7 years later (Unit 9A, 7A).
Volatility in Down Markets: In 2020, large units (THA, THB) traded near $1,050 PPSF. This building has a "glass jaw" during recessions; liquidity vanishes and prices plummet because the buyer pool for $5M+ units is thin.
Unit 6B Anomaly: The recent trade of Unit 6B at $1,101 PPSF (May 2024) suggests that distressed inventory or special situations still exist, creating valuation confusion.
10. EXECUTIVE SUMMARY
11 Beach Street is a Yield-Oriented luxury asset that serves as an effective income generator but a frustrating equity vehicle. Post-sponsor analysis demonstrates that while the building commands elite rents ($18k–$30k/mo) and offers yields (6%+) that dwarf the condo average, capital appreciation has been non-existent for long-term holders. Sellers in 2025 are exiting at prices effectively identical to their 2017–2018 purchase basis (e.g., Unit 9A), meaning they missed the entire bull run captured by the NYXRCSA index (Nov 2025: 330.28). The building is best suited for end-users seeking massive Tribeca floorplates or investors buying strictly for yield during market dips, as the "new dev premium" paid in 2016 has completely dissipated.
B³ SCORECARD
Metric | Score | Notes |
Liquidity | 50 | Low depth. Volatile DOM (25 days to 300+ days). |
Rent Capture | 88 | Elite. 6% Yields. Rents $90-$115 PSF. |
Appreciation | 20 | Flat. 2018 buyers selling flat in 2025. |
Composite | 51 | Yield-Oriented |
Disclosures:
Sponsor Normalization: Sales from 2016–2017 with "No Listing" were treated as Sponsor baselines (e.g., 6A, 8C, 2D).
Unit 6B Flag: The 2024 transaction pair ($2.6M then $5.3M) is treated as a distressed flip and excluded from standard appreciation trends to prevent skew.
Benchmark: NYXRCSA Index (Nov 2025: 330.28) indicates broad market strength that 11 Beach has lagged significantly.