The Broad Exchange Building (25 Broad Street)
1. BUILDING OVERVIEW (ANALYST FRAMING)
The Broad Exchange Building (25 Broad Street) is a recent conversion condo (built 1900, converted 2019) in the Financial District, comprising 308 units across 22 floors. Based on post-sponsor behavior, the building is classified as Yield-Oriented (At Risk). While the building generates robust rental yields with PPSF frequently exceeding $70, the resale market is struggling to establish momentum independent of the sponsor. Urbandigs data indicates the building underperforms the Financial District sub-market by 1.1%. Crucially, the sponsor remains active in 2025/2026 (evidenced by "No Listing" sales), creating an inventory overhang that forces organic resales to trade at a discount to the 2021 sponsor baseline.
2. UNIT MIX & COMPOSITION
Based on 220 recorded sales and 63 rentals, the inventory is weighted toward 1BR and 2BR configurations.
1BR: ~110 sales (~50% of activity). Median PPSF: ~$1,123.
2BR: ~85 sales (~38% of activity). Median PPSF: ~$1,175.
Studio: Limited activity (~1 sale recorded in summary).
3BR+: Rare (~1 recorded sale).
Analysis: The building is dominated by 1BR and 2BR units, which comprise nearly 90% of transaction volume. This concentration creates unit mix imbalance, as resale sellers of generic 1BRs (e.g., Line M, Line N) face competition not only from each other but also from remaining sponsor inventory.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
Liquidity (Resale Only): Organic resale liquidity is heavily impacted by the sponsor's continued presence.
Unit 17M (2BR): 346 Days on Market (Sold Oct 2024).
Unit 19O (1BR): 271 Days on Market (Sold Jul 2024).
Unit 9J (2BR): 167 Days on Market (Sold Nov 2024).
Unit 6M (1BR): 94 Days on Market (Sold Oct 2025).
Conclusion: While the median is lower, the "tail" of inventory sitting for 100–300+ days indicates a Liquidity Shift where sellers asking for sponsor-level pricing are rejected by the market.
Price Strength:
Sponsor Premium vs. Resale Reality:
Sponsor Sale (May 2025): Unit M019 sold for $1,295 PPSF ("No Listing").
Resale (Oct 2025): Unit 6M sold for $1,082 PPSF.
Insight: The secondary market applies a ~16% discount to the sponsor's asking price for the same line.
Appreciation:
Line M (1BR): Consistently trades lower on the resale market ($1,082 PPSF) compared to 2021 sponsor levels ($1,184 PPSF for Unit M011).
Line K (2BR): Flat. Unit 19K (Sponsor-like "No Listing") sold for $1,239 PPSF in Jul 2024, while earlier sponsor sales were similar.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
2021 (Sponsor Absorption): Volume was high with "No Listing" trades establishing a baseline of $1,100–$1,350 PPSF (e.g., Unit D017 at $1,302).
2023–2024 (Market Adjustment): Resale activity appeared, with PPSF softening.
2025–2026 (Divergence):
Sponsor "No Listing" sales continue to clear $1,200+ PPSF (e.g., Unit T016 at $1,290).
True Resales are clearing lower, often $1,000–$1,150 PPSF (e.g., Unit 4F at $1,047).
Conclusion:Cyclical/Down. The building is struggling to compound value post-sponsor.
5. RENT CAPTURE ANALYSIS
Mandatory Metric: Effective Annual Rent (EAR)
Unit 10H (1BR, 2025): Achieved $5,000. DOM: 144.
EAR: $5,000 × (221/365) = $3,027. (~40% Income Leakage).
Unit 9A (2BR, 2025): Achieved $5,995. DOM: 39.
EAR: $5,995 × (326/365) = $5,354..
Unit 20E (2BR, 2025): Achieved $8,500. DOM: 73.
EAR: $8,500 × (292/365) = $6,800..
Unit 14L (1BR, 2025): Achieved $4,400. DOM: 133.
EAR: $4,400 × (232/365) = $2,796. (Catastrophic Leakage).
Analysis: The building commands strong face rents ($70–$80 PPSF), identifying it as a Yield-Oriented asset. However, significant income leakage occurs in 1BR units (Line H, Line L) where DOMs exceed 130 days.
6. B³ SCORING SYSTEM (0–100)
Liquidity Score: 55
Resale DOM is inconsistent. While some units move in <50 days, a significant portion (Units 17M, 19O, 9J) sit for 100–350 days.
Rent Capture Score: 78
Strong nominal rents ($70+ PPSF) boost the score, but it is capped by the high-DOM leakage seen in 2025 rentals.
Appreciation Score: 30
Resales are trading flat or at a discount to 2021 sponsor pricing. The asset is not participating in the NYXRCSA rally (Index 331.14).
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score: 53.15
Calculation: $(55 \times 0.35) + (78 \times 0.30) + (30 \times 0.35) = 19.25 + 23.4 + 10.5 = 53.15$.
Category: Yield-Oriented (At Risk)
Justification: The building functions as a high-yield rental engine (Rent Score 78) but fails to preserve capital value (Appreciation Score 30), putting equity at risk.
8. TRANSACTION EXAMPLES
Resale Depreciation / Stagnation
Line M (1BR):
Sponsor Baseline (Unit M011): Sold Sep 2021 for $1,184 PPSF.
Resale (Unit 6M): Sold Oct 2025 for $1,082 PPSF.
Trend: -8.6% Nominal Decrease.
Driver: Sponsor price normalization.
Line O (1BR):
Sponsor Baseline (Unit O012): Sold Aug 2021 for $1,191 PPSF.
Resale (Unit 19O): Sold Jul 2024 for $1,292 PPSF (appears positive), BUT required 271 Days on Market.
Driver: Liquidity shift (DOM change).
Line L (1BR):
Sponsor Baseline (Unit L008): Sold Apr 2021 for $1,133 PPSF.
Resale (Unit 11L): Sold Jun 2024 for $1,211 PPSF.
Trend: +6.8% over 3 years (~2% CAGR).
Context: Significantly trails NYXRCSA benchmark inflation.
Driver: Market regime timing.
Line 16N (1BR):
Sold Feb 2025 for $1,243 PPSF.
Compare to Unit N011 (Sponsor 2021) at $1,163 PPSF.
Trend: Flat/Marginal.
Driver: Unit size / unit mix imbalance.
9. RISKS & RED FLAGS
Sponsor Inventory Overhang: The sponsor is still closing units in 2026 (e.g., Unit M014). This effectively caps resale appreciation because the sponsor can undercut or out-market private sellers.
Resale Discount: Buying a resale unit (e.g., Line M) currently requires a discount of ~15% relative to what the sponsor is asking for similar units.
Red Flag: Line H and Line L rentals showed extreme DOM (133–144 days) in 2025, causing massive income leakage.
10. EXECUTIVE SUMMARY
The Broad Exchange Building (25 Broad Street) is a Yield-Oriented (At Risk) asset that offers strong rental cash flow ($70–$75 PPSF) but is currently a weak vehicle for capital appreciation. Post-sponsor analysis reveals a dual market: the Sponsor continues to clear "No Listing" inventory at premium prices ($1,200–$1,300 PPSF) in 2025, while the organic resale market trades at a structural discount ($1,000–$1,100 PPSF). This gap, combined with resale absorption times often exceeding 100 days, indicates that early buyers are facing negative real returns compared to the NYXRCSA benchmark. The building is best suited for income-focused investors who can acquire units at the distressed resale basis, not the sponsor's primary price.
B³ SCORECARD
Liquidity Score: 55
Rent Capture Score: 78
Appreciation Score: 30
Composite Score: 53.15
Category: Yield-Oriented (At Risk)
Unit Mix: 1BR/2BR Dominant (~88% of sales)
Disclosures: Approximately 50+ transactions from 2021–2026 (marked "No Listing" or with DOM $\le$ 30 days) were reclassified as Sponsor-Driven per the B³ Protocol. These transactions (e.g., M014, T016, M019) establish the premium price baseline against which resale depreciation was measured.