Cipriani Club Residences (55 Wall Street)
1. BUILDING OVERVIEW (ANALYST FRAMING)
Cipriani Club Residences (55 Wall Street) is a postwar resale condo (converted 2006) located in the Financial District, comprising 106 units. Based on post-sponsor behavior, the building is classified as Yield-Oriented (At Risk). While the "Cipriani" brand implies luxury, the asset currently functions as a capital destruction vehicle. Urbandigs data indicates it underperforms the Financial District sub-market by 43.2%. Longitudinal analysis reveals catastrophic negative appreciation, with recent 2024–2025 resales clearing at prices 50% to 60% below their 2006–2008 sponsor baselines. This occurs while the NYXRCSA index has risen from ~215 (2006) to 331.14 (Oct 2025), highlighting a massive divergence between broader market growth and this specific asset's deflation.
2. UNIT MIX & COMPOSITION
Based on 229 recorded sales, the inventory is overwhelmingly skewed toward transient, small-footprint units, which commoditizes the resale market.
Studio: ~73 sales (~32% of activity).
1BR: ~114 sales (~50% of activity).
2BR: ~21 sales (~9% of activity).
3BR+: Negligible volume.
Analysis: The building is dominated by Studio and 1BR units (~82% of sales volume). This high concentration creates a unit mix imbalance, as sellers of generic small units face intense internal competition. The lack of family-sized inventory limits the building's ability to retain long-term owner-occupiers, reinforcing its status as a high-churn rental factory.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
Liquidity (Resale Only): Organic resale liquidity is critically poor.
Unit 554 (1BR): 309 Days on Market (Sold Dec 2024).
Unit PH900 (1BR): 354 Days on Market (Sold Feb 2024).
Unit 802 (1BR): 213 Days on Market (Sold Jun 2025).
Unit 714 (Studio): 182 Days on Market (Sold Aug 2024).
Conclusion: The median resale DOM significantly exceeds the benchmark, often requiring 6–12 months to exit.
Price Strength:
Recent 2025 trades show a collapse in pricing power.
Unit 540 (2BR) sold for $542 PPSF in Jun 2025.
Unit 802 (1BR) sold for $509 PPSF in Jun 2025.
Comparison: These PPSF levels are startlingly low for Manhattan condos, effectively trading at a discount to replacement cost.
Appreciation:
Compounding is negative across virtually all lines.
Line 40 (2BR) and Line 02 (1BR) consistently trade at massive nominal losses relative to sponsor valuations due to severe Sponsor price normalization.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
2006–2008 (Sponsor Phase): Pricing established at $1,300–$1,800+ PPSF. (e.g., Unit 900 sold for $1,801 PPSF in 2008).
2014–2016 (Correction): Resale pricing softened to $900–$1,200 PPSF.
2023–2025 (Capitulation): The floor has collapsed. Recent trades cluster between $500 and $800 PPSF.
Example: Unit 540 sold for $542 PPSF in 2025, compared to $1,348 PPSF in 2008.
Conclusion: Deep Drawdown. The building is in a structural bear market, effectively decoupling from the NYC condo index.
5. RENT CAPTURE ANALYSIS
Mandatory Metric: Effective Annual Rent (EAR)
Unit 632 (1BR, 2024): Achieved $4,750. DOM: 190. EAR: $2,277.
Calculation: $4,750 × (175/365). ~52% Income Leakage.
Unit PH910 (3BR, 2025): Achieved $14,775. DOM: 168. EAR: $7,974.
Calculation: $14,775 × (197/365). ~46% Income Leakage.
Unit 600 (1BR, 2025): Achieved $7,500. DOM: 32. EAR: $6,842.
Calculation: $7,500 × (333/365). Good capture.
Unit 542 (1BR, 2025): Achieved $5,000. DOM: 17. EAR: $4,767.
Analysis: While select units (Unit 542, 600) capture rent efficiently, the building suffers from localized but severe income leakage (Units 632, PH910). When units are mispriced, they sit for 5–6 months, destroying the annual yield despite "luxury" face rents.
6. B³ SCORING SYSTEM (0–100)
Liquidity Score: 30 (Critical Failure. Organic resale DOM frequently exceeds 180–300 days. Exiting this asset is difficult and slow).
Rent Capture Score: 65 (Nominal rents are decent ($60–$70 PPSF), but leakage due to high DOM on larger or mispriced units penalizes the score).
Appreciation Score: 10 (Catastrophic. The asset demonstrates consistent, deep negative compounding over 15+ year hold periods).
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score: 33.5
Category: Yield-Oriented (At Risk)
Justification: The building functions as a rental asset (Yield), but the extreme destruction of capital value (Appreciation Score 10) and poor liquidity places it deeply in the "At Risk" category.
8. TRANSACTION EXAMPLES
Resale Depreciation (Capital Destruction)
Unit 730 (2BR):
Prev Trade (Sponsor): $2,583,065 ($1,544 PPSF) in Aug 2007.
Sold: $1,060,000 ($633 PPSF) in Aug 2025.
Result: -59% Loss.
Driver: Sponsor price normalization.
Unit 540 (2BR):
Prev Trade (Sponsor): $2,324,146 ($1,348 PPSF) in Mar 2008.
Sold: $935,000 ($542 PPSF) in Jun 2025.
Result: -59.7% Loss.
Driver: Sponsor price normalization / Market regime timing.
Unit 622 (1BR):
Prev Trade: $1,198,026 ($1,510 PPSF) in Sep 2006.
Sold: $921,953 ($1,162 PPSF) in Sep 2024.
Result: -23% Loss.
Driver: Liquidity shift (DOM change).
Unit 602 (1BR):
Prev Trade: $1,547,463 ($1,314 PPSF) in May 2007.
Sold: $730,000 ($620 PPSF) in Aug 2023.
Result: -52.8% Loss.
Driver: Sponsor price normalization.
Resale Appreciation
Analyst Note: There are zero examples in the 2023–2025 transaction record of units appreciating over their 2006–2008 sponsor baselines. The entire building is in a state of nominal value deflation.
9. RISKS & RED FLAGS
Sponsor Price Normalization: Buyers in 2006–2008 paid massive premiums ($1,500+ PPSF) driven by the "Cipriani" brand. The secondary market has rejected this premium, re-rating the building to a generic FiDi basis ($600–$900 PPSF).
Extreme Liquidity Risk: With resale DOMs often exceeding 200–300 days (e.g., Unit PH900, 554), capital is effectively trapped.
Red Flag: Do not buy this building for capital preservation. The historical data confirms it acts as a "melting ice cube," losing 30–60% of nominal value over an 18-year hold period.
10. EXECUTIVE SUMMARY
Cipriani Club Residences (55 Wall Street) is a Yield-Oriented (At Risk) asset that serves as a cautionary tale of "Sponsor Price Normalization." While the building generates rental activity, it has been a catastrophic vehicle for equity owners, with 2024–2025 resales consistently clearing at 50% to 60% losses compared to 2007 valuations. This occurs despite the NYXRCSA benchmark rising 50%+ over the same period. The building suffers from a unit mix imbalance (82% Studio/1BR) and poor liquidity (DOM > 180 days). Opportunity exists strictly for yield-focused investors entering at the new distressed basis ($550–$700 PPSF), but the asset has failed to capture any market appreciation in nearly two decades.
B³ SCORECARD
Liquidity Score: 30
Rent Capture Score: 65
Appreciation Score: 10
Composite Score: 33.5
Category: Yield-Oriented (At Risk)
Unit Mix: Studio/1BR Dominant (82% of sales)
Disclosures: Approximately 50+ transactions from 2006–2008 with "No Listing" status were identified as Sponsor-Driven. These established the high initial pricing baseline ($1,300–$1,800 PPSF) against which current resales ($500–$800 PPSF) show severe depreciation.