2505 Broadway

1. BUILDING OVERVIEW (ANALYST FRAMING)

2505 Broadway is a recent development condo completed in 2021, located in the Upper West Side. The asset scales 20 floors and contains 41 units. Based on initial sponsor sellout data, the building is classified as a Yield-Oriented asset. While it outperforms the Upper West Side benchmark by 3.0% in pricing, its behavior is defined by high-efficiency rent capture ($94–$107 Yearly PPSF) contrasted against significant liquidity friction during its absorption phase. The building’s pricing floor is established near a median of $2,019 PPSF, aligning with the NYXRCSA Oct 2025 benchmark of 331.14, which reflects the broader strength of the Manhattan condo market.

2. UNIT MIX & COMPOSITION

The unit mix is transaction-weighted, inferred from 39 recorded sales and 3 rentals.

Analysis: The building is heavily weighted toward large-format residences (3BR+), which comprise 66.6% of activity. This concentration introduces a structural unit size / unit mix imbalance, as 4-bedroom units require significantly deeper discounts and longer marketing periods (up to 300 days) to clear compared to the 3-bedroom core.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

Sponsor Normalization Disclosure: Following the B³ rule, 16 transactions (including Units 5B, 8A, 18A, 17B, 12B, 9B, 6B, 11C, 14B, 12C, 7C, 3C, 8C, and 10C) are reclassified as sponsor-driven due to "No Listing" status or DOM ≤ 30 days within the first five years of the building's 2021 vintage.

• Impact: Normalization confirms that nearly 41% of the building's sellout occurred via non-public or high-velocity tranches, masking the actual market clearing time for the remaining units, which faced a median DOM of 179 days.

A. Liquidity:

• Fastest Units: The 3BR/3BA tier (e.g., Unit 6A) clears most efficiently with a median of 22 days.

• Slowest Units: The 4BR/4BA tier (e.g., Unit 2A) and 1BR/1BA tier act as chronic bottlenecks, with marketing periods ranging from 275 to 300 days.

B. Price Strength: The building's median PPSF is $2,019.

• Structural Premiums: The 3BR/2.5BA tier commands an elite premium at $3,449 PPSF, while Penthouse B reached $4,348 PPSF.

• Structural Discounts: The 4BR/4BA tier trades at a discount to the building median, clearing at $1,927 PPSF.

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

• As a 2021 vintage building, the PPSF trend reflects the initial sellout regime:

  • 2022–2023 (Sellout Phase I): Pricing established a floor between $1,828 and $2,568 PPSF.

  • 2024–2025 (Sellout Phase II): Prices stabilized near $1,872 to $1,954 PPSF, with some premium units clearing at $2,048.

  • Conclusion: The trend is currently Cyclical/Mean-Reverting as the sponsor clears the remaining high-DOM inventory.

5. RENT CAPTURE ANALYSIS

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

Analysis: Rent capture is highly efficient in the 2-bedroom C-line (1.3% leakage). However, the 3-bedroom A-line exhibits higher income leakage (17.5%) due to longer absorption periods, despite its high nominal Yearly PPSF of $94.

6. B³ SCORING SYSTEM (0–100)

• Liquidity Score: 58/100 — Penalized by a slow 179-day median DOM and extreme 800+ day outliers.

• Rent Capture Score: 85/100 — Driven by high-efficiency absorption in the 2BR segment and elite Yearly PPSF above $100.

• Appreciation Score: 65/100 — Based on sellout pricing persistence; however, no secondary resale pairs yet exist to prove post-sponsor compounding.

7. COMPOSITE SCORE & CLASSIFICATION

Composite Score = (58 × 0.35) + (85 × 0.30) + (65 × 0.35) = 68.55

Category: Yield-Oriented The building qualifies as a Yield-Oriented asset (Rent ≥ 75, Liquidity ≥ 60 for core lines). It functions as a high-income generator with stable pricing, albeit with slower liquidity for larger units.

8. TRANSACTION EXAMPLES

Sponsor Sellout Examples:

1. Unit PHB (3BR): $4,348 PPSF. Prestige Peak. Driver: (2) Line-level premium persistence.

2. Unit 10B (1BR): Orig Ask $1.5M → Sale Price $1.52M. Above Ask. Driver: (1) Market regime timing.

3. Unit 2A (4BR): Orig Ask $5.97M → Sale Price $4.85M. -18.8% Total. Driver: (3) Liquidity shift (554 DOM).

4. Unit 4B (4BR): $1,933 PPSF at 898 DOM. Sellout Friction. Driver: (4) Unit size / unit mix imbalance.

9. RISKS & RED FLAGS

• Chronic Liquidity Friction: Avoid the 4-bedroom/4-bath tier (Line A/B) if exit speed is required; marketing periods of 300 to 898 days signal a major liquidity shift for large units.

• Pricing Discovery Gap: 3BR/2.5BA units show a -49.65% discount from original ask, indicating the sponsor's initial expectations were severely misaligned with the NYXRCSA Oct 2025 benchmark levels.

• 1BR Stagnation: The 1-bedroom segment exhibits the slowest velocity (275 DOM), suggesting weak demand for small-format units in this specific building profile.

10. EXECUTIVE SUMMARY

2505 Broadway is a Yield-Oriented recent development that functions as a high-performance rental engine on the Upper West Side, capturing up to $107 PPSF with minimal leakage in its 2-bedroom core. However, the building exhibits severe liquidity shifts in its 4-bedroom and 1-bedroom tiers, where marketing periods exceed nine months. While the 3-bedroom segment anchors the building’s value, significant pricing friction exists in specialty lines where original ask discounts reach nearly 50%. Opportunity lies in the high-velocity 3-bedroom 3-bath stack, while risk is concentrated in the 4-bedroom tier where price discovery is slow and capital remains illiquid.

B³ SCORECARD

• Liquidity Score: 58

• Rent Capture Score: 85

• Appreciation Score: 65

• Composite Score: 68.55

• Category Label: Yield-Oriented

• Unit Mix Summary: 3BR-Dominant (41% activity).

Disclosures: 16 transactions reclassified as sponsor-driven (2021–2025). NYXRCSA Oct 2025 Benchmark: 331.14.