250 East 65 Street

1. BUILDING OVERVIEW (ANALYST FRAMING)

250 East 65 Street is a Postwar Resale Condo (Built 1964) located in the Lenox Hill / Upper East Side market. Standing 14 floors tall with approximately 87 units, it functions as a mid-tier full-service building.

Based on transaction history and the current NYXRCSA benchmark of 331.14 (Oct 2025), the building is classified as Yield-Oriented (Secondary: Lagging/Stagnant).

This classification is justified by a structural decoupling from broader market appreciation. While the NYXRCSA index reached an all-time high of 331.14 in late 2025, 250 East 65 Street has exhibited nominal capital stagnation and realized losses over medium-to-long holding periods. The definitive signal is Unit 9A, which sold in April 2014 for $1.90M and resold in March 2023 for $1.825M—a realized -3.9% nominal loss despite a 9-year holding period. Listing sources explicitly note the building "Underperforms Lenox Hill by 12.2%". Value is currently derived from rental yields (~$60–$85 PPSF) rather than equity compounding.

2. UNIT MIX & COMPOSITION

Based on transaction-weighted data from 92 recorded sales, the inventory is balanced between 1-Bedroom and 2-Bedroom residences:

• 1BR: ~35% of activity (32 sales). Sizes 960–1,067 sqft.

• 2BR: ~35% of activity (32 sales). Sizes 1,300–1,450 sqft.

• 3BR: ~12% of activity (11 sales). Sizes 1,750–1,800 sqft.

• Other: 1.5 bath / Studio configurations make up the balance.

Influence on Behavior: The building possesses a standardized "commodity" unit mix. Lines A (2BR) and D/G (1BR) trade frequently, establishing clear price discovery. However, the larger 3BR units (Line E) suffer from higher volatility and longer days on market (e.g., Unit 10E took 314 days), indicating the building is viewed primarily as a transitional or pied-à-terre asset rather than a primary family destination.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

Note: Pursuant to the Sponsor Normalization Rule, sales from 2003–2006 marked "No Listing" or with DOM < 30 (e.g., 12H, 8G, 9D, 5D, 12E, 11A) are treated as Conversion/Sponsor transfers and excluded from resale liquidity metrics.

A. Liquidity

• Fastest: Unit 8A sold in 6 days (2023). Unit 8B sold in 17 days (2025). Unit 5D (2017) sold in 19 days.

• Slowest: Unit 10E took 314 days (2021). Unit 13H took 219 days (2021). Unit 8D took 265 days (2016).

• Median Resale DOM: The building-wide median is 71 days. However, 3-Bedroom units (Line E) face significantly higher friction (Median ~154 days for recent trades), creating a bifurcated liquidity profile (Driver 4).

B. Price Strength

• Ceiling (Peak): Pricing power peaked in 2014–2015. Unit 9A sold for $1,357 PPSF ($1.90M) in 2014. Unit 9E reached $1,555 PPSF in 2022.

• Baseline (Current): The 2023–2025 baseline has reset to $1,300–$1,425 PPSF.

  • Unit 8B (2025): $1,425 PPSF.

  • Unit 12A (2024): $1,385 PPSF.

  • Unit 8A (2023): $1,107 PPSF.

• Discounting: Recent sales often require discounts to clear. Unit 12A (2024) listed for $2.25M and sold for $1.94M (-13.7% discount).

C. Appreciation

• Negative Trend: Unit 9A lost -$75,000 nominally between 2014 and 2023.

• Volatility: Unit 5D sold for $1.08M in 2017 and resold for $950k in 2020 (-12% Loss).

• Stagnation:Unit 12A gained only +6.3% total between 2019 ($1.825M) and 2024 ($1.94M), a CAGR of ~1.2%, failing to beat inflation.

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

• The building is in a Structural Stagnation phase.

  • Sponsor/Early Baseline (2004–2006): Sales cleared $800–$1,000 PPSF.

  • Cycle Peak (2014–2015): Sales surged to $1,300–$1,357 PPSF (Unit 9A, 14F).

  • Correction (2020–2023): Prices were volatile, with some units dropping to $900–$1,100 PPSF (Unit 6H, 8A).

  • Recovery Attempt (2024–2025): Prices have returned to $1,385–$1,425 PPSF (Units 12A, 8B).

  • Trend: Flat. The building is trading at roughly the same nominal PPSF in 2024/2025 as it did in 2014/2015 ($1,350–$1,400 range). It has effectively generated zero capital appreciation over the last decade.

5. RENT CAPTURE ANALYSIS

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

A. Rent Capture

• Unit 7G (2024):

  • Rent: $7,300 ($85 PPSF).

  • DOM: 33 days.

  • Effective Rent: ~$6,640/mo. Status: Efficient.

• Unit 13B (2021):

  • Rent: $5,000 ($42 PPSF).

  • DOM: 167 days.

  • Effective Rent: ~$2,712/mo. Status: Catastrophic Failure. (Pandemic impact + pricing error).

• Unit 14C (2024):

  • Rent: $6,625 ($56 PPSF).

  • DOM: 16 days.

  • Status: Strong Capture.

B. Rent Appreciation

• Slow Growth: Unit 14C rented for $5,850 in 2016 and $6,625 in 2024. This represents +13.2% total growth over 8 years (~1.5% CAGR), trailing inflation significantly.

• Volatility: Unit 7F dropped from $8,300 (2021) to $8,000 (Oct 2021) before recovering to $8,750 (2023).

6. B³ SCORING SYSTEM (0–100)

• Liquidity Score: 60/100 (Median DOM of 71 days is average. 1BR/2BR units move relatively quickly, but 3BR units [10E, 8D] drag the score down with 200-300+ day listings).

• Rent Capture Score: 65/100 (Decent nominal PPSF [$60–$85]. Generally efficient absorption for smaller units. Penalized for slow long-term rental growth [<2% CAGR]).

• Appreciation Score: 25/100 (Confirmed nominal losses on Unit 9A and 5D. 10-year flatline in pricing from 2014 to 2024. Zero Beta vs NYXRCSA).

• Composite Score: 48.75/100.

7. TRANSACTION EXAMPLES

Resale Depreciation (Market Regime/Long Hold):

• Unit 9A (2BR / 1,400 sqft):

  • Sold Apr 2014: $1,900,000 ($1,357 PPSF).

  • Sold Mar 2023: $1,825,000 ($1,303 PPSF).

  • Result: -3.9% Nominal Loss ($75k) over 8.9 years. Driver: 1 (Market Regime).

Resale Depreciation (Short Hold/Volatility):

• Unit 5D (1BR / 1,050 sqft):

  • Sold Jun 2017: $1,080,000 ($1,028 PPSF).

  • Sold Oct 2020: $950,000 ($904 PPSF).

  • Result: -12.0% Nominal Loss over 3.3 years. Driver: 1.

Resale Stagnation (Inflation Loss):

• Unit 12A (2BR / 1,400 sqft):

  • Sold Nov 2019: $1,825,000 ($1,303 PPSF).

  • Sold Jan 2024: $1,940,000 ($1,385 PPSF).

  • Result: +6.3% Nominal Gain over 4.2 years (~1.4% CAGR). Driver: 1.

Rent Growth (Lagging):

• Unit 14C (2BR Rental):

  • Mar 2016 Rent: $5,850.

  • Sep 2024 Rent: $6,625.

  • Result: +13.2% Total Growth over 8.5 years. Driver: 1.

8. RISKS & RED FLAGS

• Dead Money Trap: Buying at 2014–2015 peak prices ($1,350+ PPSF) resulted in losses or zero real growth by 2023–2024 (Unit 9A).

• Pricing Ceiling: The building struggles to sustain values above $1,400 PPSF. Sellers asking above $1,500 PPSF often face long DOM or price cuts (Unit 12A cut from $2.25M to $1.94M).

• Underperformance: Explicitly flagged as underperforming its sub-market by 12.2%, indicating structural weakness relative to neighbors.

9. EXECUTIVE SUMMARY

250 East 65 Street is a Yield-Oriented condo that functions as a stable rental asset but a wealth trap for equity appreciation. Despite the NYXRCSA index hitting an all-time high of 331.14 in 2025, resale values in this building have stagnated for a decade. Unit 9A realized a 3.9% nominal loss after a 9-year hold ($1.90M $\to$ $1.825M), proving the building has failed to capture post-2014 market gains. While rental yields are respectable ($60–$85 PPSF) and liquidity for smaller units is healthy, long-term rent growth is weak (~1.5% CAGR). Investors should view this as a cash-flow vehicle only, entering at a basis below $1,200 PPSF to ensure safety.

B³ SCORECARD

• Liquidity Score: 60

• Rent Capture Score: 65

• Appreciation Score: 25

• Composite Score: 48.75

• Category: Yield-Oriented (Lagging/Stagnant)

• Unit Mix: 35% 1BR / 35% 2BR / 12% 3BR [Transaction Weighted]

• Sponsor Normalization: Sales from 2003–2006 marked "No Listing" or with DOM < 30 days reclassified as Sponsor/Conversion Baseline.