The Caledonia (450 West 17 Street)

The Caledonia is a Hybrid asset that functions as a high-velocity capital vault for 1BR/2BR investors but presents significant risk in its larger floorplates. While core lines have achieved reliable Appreciation-Driven growth—shifting from $1,100 to over $2,100 PPSF—the building suffers from "marketing sludge" in its 3BR segment and catastrophic income leakage across various units. Rental vacancies can exceed 300 days, destroying realized yield. Opportunity lies in the high-velocity Line 06 and 03 resale stacks, while risk is concentrated in the illiquid 3BR stacks which trail building-wide liquidity standards.

Tony InJe Yeo

Feb 26, 2026

Contents

1. BUILDING OVERVIEW (ANALYST FRAMING)2. UNIT MIX & COMPOSITION 3. LINE (STACK) PERFORMANCE — RESALE ONLY 4. BUILDING-WIDE PPSF TREND (NORMALIZED)5. RENT CAPTURE ANALYSIS 6. B³ SCORING SYSTEM (0–100)7. COMPOSITE SCORE & CLASSIFICATION 8. TRANSACTION EXAMPLES 9. RISKS & RED FLAGS 10. EXECUTIVE SUMMARY B³ SCORECARD

1. BUILDING OVERVIEW (ANALYST FRAMING)

The Caledonia (450 West 17 Street) is a mature postwar resale condo completed in 2006 in the Chelsea / Midtown submarket. The building is a large-scale development consisting of 24 floors and 469 units.

The building is classified as a Hybrid (Appreciation-Driven secondary). This classification is justified by its high transaction volume (374 recorded sales) and significant capital compounding, with PPSF floors rising from sponsor-era levels of ~$1,200 to current resale peaks exceeding $2,400 PPSF. While the building outperforms Chelsea by 16.6%, it exhibits bifurcated liquidity behavior: its 1BR core is highly efficient, but its 3BR+ and Studio segments suffer from significant marketing friction and deep original discounts. The building's valuation tracks toward the NYXRCSA index, which reached 331.14 in October 2025.

2. UNIT MIX & COMPOSITION

The inventory is transaction-weighted based on 374 recorded sales and 682 rentals.

Unit Type	% of Activity	Med. PPSF	Med. DOM	Original Discount
Studio	4.0%	$1,292	94	-5.13%
1BR	42.8%	$1,573	48	-6.01%
2BR	35.0%	$1,907	76	-6.57%
3BR+	7.5%	$1,602–$2,448	36–616	-9.09% to -27.64%

Analysis: The Caledonia is 1BR-dominant, providing strong liquidity stability for the building's core. However, the 3BR/2.5BA segment is a source of extreme volatility, requiring a median of 616 days to clear the market with a massive -27.64% discount, signaling a significant unit size/mix imbalance for that specific floorplate.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

Excludes activity reclassified per the B³ Sponsor Normalization Rule.

A. Liquidity (Resale DOM)

Fastest: Line 06 (Unit 1206 @ 25 days) and Line 03 (Unit 1603 @ 28 days).
Slowest: Line 23 (Unit 1023 @ 457 days) and Line 09 (Unit 1709 @ 452 days).

B. Price Strength (PPSF)

Structural Premiums: PH Lines (PH4 @ $2,643) and Upper 03/04 Lines (Unit 2404 @ $2,470).
Structural Discounts: Line 14 (Unit 1114 @ $1,586) and Studio lines typically represent the building floor.

C. Appreciation (Line-Level Growth)

Compounding: Line 06 (2BR) moved from $1,281 PPSF (2008) to $2,117 PPSF (2025).
Compounding: Line 20 (2BR) moved from $1,435 PPSF (2010) to $2,006 PPSF (2024).
Compounding: Line 12 (1BR) moved from $1,083 PPSF (2009) to $1,766 PPSF (2024).

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

2008–2010 (Sponsor Baseline): $1,083 – $1,556 PPSF.
2014–2018 (Peak Phase): $2,073 – $2,871 PPSF.
2024–2025 (Current Maturity): $1,844 – $2,456 PPSF.
Conclusion: Compounding. The building has established a rising valuation floor over 17 years. While trophy units hit peaks near $2,800, the secondary market has stabilized at a floor 40%+ higher than initial 2008 baselines.

5. RENT CAPTURE ANALYSIS

Effective Annual Rent = Achieved Rent × (365 − Rental DOM) ÷ 365.

Unit/Line	Achieved Rent	Rental DOM	Effective Annual Rent	Status
1904 (2BR)	$13,500	11	$13,093	High Capture
PH01 (1BR)	$7,400	7	$7,258	High Capture
1909 (2BR)	$14,900	110	$10,409	Moderate Leakage
1408 (2BR)	$9,500	231	$3,489	Severe Leakage
1111 (1BR)	$4,290	359	$70.50	Terminal Leakage

Analysis: Rent capture is highly inconsistent. While the 1904 and PH01 lines are elite income vehicles, the building suffers from catastrophic yield leakage in specific units; a 359-day vacancy in Unit 1111 effectively destroyed 98% of the annual potential income.

6. B³ SCORING SYSTEM (0–100)

Liquidity Score: 72 (High volume, median 48-76 days; penalized for 600+ day 3BR outliers).
Rent Capture Score: 68 (High $/SF yield over $100 Yearly PPSF offset by severe vacancy leaks).
Appreciation Score: 84 (Proven secondary market expansion from $1,000s to $2,000s PPSF).

7. COMPOSITE SCORE & CLASSIFICATION

Composite Score: 75.0
Category Label: Hybrid / Appreciation-Driven
Unit Mix Summary: 1BR (42.8%) and 2BR (35%) dominant.

8. TRANSACTION EXAMPLES

Resale Appreciation:

Unit 1206 (2BR): $1,281 PPSF (2008) → $2,117 PPSF (2025). +65.2% Total. Drivers: (1) Market regime timing, (5) Sponsor price normalization.
Unit 1212 (1BR): $1,083 PPSF (2009) → $1,766 PPSF (2024). +63.1% Total. Drivers: (1) Market regime timing, (5) Sponsor price normalization.
Unit 1120 (2BR): $1,435 PPSF (2010) → $2,006 PPSF (2024). +39.8% Total. Drivers: (1) Market regime timing, (5) Sponsor price normalization.
Unit 1209 (1BR): $1,438 PPSF (2008) → $2,316 PPSF (2022). +61.1% Total. Drivers: (2) Line-level premium persistence, (5) Sponsor price normalization.

Resale Depreciation / Friction:

Unit 1709 (3BR): $1,679 PPSF (2008) → $2,107 PPSF (2024). Growth stalled by friction (452 Days on Mkt). Drivers: (3) Liquidity shift, (4) Unit size / unit mix imbalance.
Unit 1023 (1BR): $1,236 PPSF (2008) → $2,125 PPSF (2024). Value growth but high sludge (457 Days on Mkt). Drivers: (3) Liquidity shift.
Unit 1509 (3BR): $2,871 PPSF (2017) → $2,318 PPSF (2025). -19.3% Drawdown. Drivers: (1) Market regime timing, (3) Liquidity shift.
Unit 1106 (2BR): $1,974 PPSF (2021) → $1,281 PPSF (2008 baseline). Resale regression. Drivers: (1) Market regime timing.

9. RISKS & RED FLAGS

Terminal Rent Leakage: Avoid Unit 1111 and 1408 for income purposes; historical vacancies of 231 to 359 days render these assets net carry liabilities during market turns.
3BR Liquidity Sludge: The 3BR/2.5BA stack is a high-risk segment with a 616-day median DOM, suggesting these units act as "liquidity traps" rather than efficient exits.
What NOT to Buy: 3BR/2.5BA units (Line 09/08 types) unless at a significant discount; their structural illiquidity and -27% discount profile indicate poor absorption persistence.

10. EXECUTIVE SUMMARY

The Caledonia is a Hybrid asset that functions as a high-velocity capital vault for 1BR/2BR investors but presents significant risk in its larger floorplates. While core lines have achieved reliable Appreciation-Driven growth—shifting from $1,100 to over $2,100 PPSF—the building suffers from "marketing sludge" in its 3BR segment and catastrophic income leakage across various units. Rental vacancies can exceed 300 days, destroying realized yield. Opportunity lies in the high-velocity Line 06 and 03 resale stacks, while risk is concentrated in the illiquid 3BR stacks which trail building-wide liquidity standards.

B³ SCORECARD

Liquidity Score: 72
Rent Capture Score: 68
Appreciation Score: 70
Composite Score: 70.1
Category Label: Hybrid
Unit Mix Summary: 1BR-dominant (42.7% of sales activity), followed by 2BRs (35.0%)

Sponsor Normalization: 84 transactions (including Units 1006, 1112, 1116, 2302, and several "No Listing" sales between 2008-2013) were reclassified as Sponsor-Driven per the B³ rule.

Impact: Normalization revealed a true resale reality of 48–76 days for core units, correcting for the "instant" sales signal of the initial sell-out.

Benchmark: Analysis utilizes the Oct 2025 NYXRCSA (331.14).