The American Felt Building (114 East 13th Street)
1. BUILDING OVERVIEW (ANALYST FRAMING)
Building Type: Prewar Loft Condo (Built 1906)
Scale: 11 Floors, ~40 Units
Classification: Yield-Oriented (Historically Hybrid)
Justification: Post-sponsor resale data reveals a distinct regime shift. From 2004 to 2017, the American Felt Building was a high-growth asset, with prices nearly doubling. However, since 2017, the building has decoupled negatively from the NYXRCSA benchmark. While the index rose from ~270 (2017) to ~330 (2025), resale prices at 114 East 13th St have remained flat or contracted (e.g., Unit 6A sold for less in 2025 than in 2017). Currently, the asset excels at Rent Capture—generating elite yields and PPSF—while functioning as a store of value rather than a growth vehicle.
2. UNIT MIX & COMPOSITION
Data Basis: Transaction-weighted inventory (N=50 sales).
Composition:
Studios: Rare. (~10% of activity).
1-Beds (~930–1,330 SF): The dominant inventory (~70% of activity). These are large, loft-like layouts.
2-Beds / 3-Beds / PH: Often combinations or unique layouts (~20%).
Impact: The concentration of large 1-bedroom lofts creates a specific liquidity profile. These units command high rentals (often converted to functional 2-beds by tenants or used as luxury 1-beds), but the high absolute price point for a "1-bed" ($1.5M–$1.8M) limits the buyer pool compared to standard efficient 1-beds.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
Sponsor normalization: Not applicable for recent data (Building is mature resale).
A. Liquidity (Speed)
Rank 1 (Fastest): A-Line (Large 1-Beds). e.g., Unit 6A (2025) cleared in 6 days.
Rank 2 (Slowest): C-Line (Recent friction). e.g., Unit 7C (2025) took 133 days.
Recent Shift (2024–2025): Mixed/Volatile.
Unit 6A: 6 Days (Jun 2025).
Unit 11C: 43 Days (Mar 2025).
Unit 7C: 133 Days (May 2025).
Conclusion: Pricing precision is critical. Unit 6A was priced to move; 7C lingered.
B. Appreciation (Durability)
A-Line (1-Bed): Mean-Reverting.
Unit 6A Sold 2017: $1,875,000.
Unit 6A Sold 2025: $1,800,000.
Result: -4% Nominal Loss over 8 years.
C-Line (1-Bed): Stagnant.
Unit 7C Sold 2017: $1,805,632.
Unit 7C Sold 2025: $1,775,000.
Result: -1.7% Nominal Loss over 8 years.
Real Impact: Significant loss when adjusted for inflation and transaction costs.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
Growth Phase (2004–2017): Massive compounding.
2004 Median PPSF: ~$900.
2017 Median PPSF: ~$1,650–$1,750.
Plateau/Correction Phase (2018–2025):
2017 Peak: Units traded consistently at $1,600–$1,750 PPSF.
2025 Reality:
Unit 6A: $1,463 PPSF.
Unit 11C: $1,645 PPSF.
Unit 7C: $1,724 PPSF.
Trend: Cyclical Drawdown. The building hit a valuation ceiling in 2017 and has struggled to break it, despite the broader NYC market (NYXRCSA) reaching new highs.
5. RENT CAPTURE ANALYSIS
A. Rent Capture by Line
1-Beds (A/B Lines): Strong Performance.
Unit 6A: Sold $1.8M (2025). Rented $8,450 (Aug 2024).
Gross Yield: ~5.6%.
PPSF: $82/ft.
DOM: 13 Days.
Unit 7B: Rented Nov 2023 for $6,795. DOM: 3 Days.
Penthouses: Elite Capture.
Unit PHC: Rented Jun 2025 for $13,500.
PPSF: $119/ft. (Luxury tier).
B. Conclusion Rent Capture is the building's current strength. While sale prices have dipped, rents have surged. Unit 6A rent increased from implied lower levels to $8,450, and PHC commands nearly $120 PPSF.
6. B³ SCORING SYSTEM (0–100)
(Scores 0–100 based on Normalized Data)
A. Liquidity Score: 65/100
Strength: Median DOM is respectable (~40–50 days).
Strength: High demand for "loft" product keeps vacancy low.
Penalty: Significant outliers (133 days for 7C) indicate price resistance at the 2017 peak levels.
B. Rent Capture Score: 90/100
Strength: Rents >$80 PPSF for standard units and >$115 PPSF for PHs.
Strength: Rapid absorption (Rentals often clear in <14 days).
Strength: Solid yields (5.5%+).
C. Appreciation Score: 45/100
Strength: Excellent long-term history (2004–2017 holders roughly doubled money).
Penalty: Negative performance for the 2017–2025 cycle.
Penalty: Underperformance vs NYXRCSA (Index +22% vs Building -4%).
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score: 65 (Liquidity 65 × 0.35) + (Rent 90 × 0.30) + (Appreciation 45 × 0.35)
Classification: Yield-Oriented
Definition: Currently behaves as a high-income asset with flat equity growth. While it was "Appreciation-Driven" in the past, the current cycle defines it by its ability to generate rent rather than capital gains.
8. TRANSACTION EXAMPLES
Resale Depreciation (The 2017 Ceiling):
Unit 6A (1-Bed):
Bought Aug 2017: $1,875,000
Sold Jun 2025: $1,800,000
Result: -4% Loss over nearly 8 years.
Driver: Market Regime Timing (Bought at peak) & Appreciation Stagnation.
Unit 7C (1-Bed):
Bought Apr 2017: $1,805,632
Sold May 2025: $1,775,000
Result: -1.7% Loss (Nominal).
Driver: Liquidity Shift (Took 133 days to sell).
Unit 2B (1-Bed):
Bought Oct 2022: $1,450,000
Sold Jan 2024: $1,200,000
Result: -17% Loss over 15 months.
Driver: Liquidity Shift / Potential Distress (Short hold).
Resale Appreciation (Long-Term Holders):
Unit 7C (Long Term):
Bought Oct 2004: $920,000
Sold Apr 2017: $1,805,632
Result: +96% over 13 years.
Driver: Market Regime Timing (Captured the entire pre-2017 boom).
Unit 8A (1-Bed):
Bought Apr 2006: $1,330,000
Sold Jun 2017: $2,200,000
Result: +65% over 11 years.
Driver: Market Regime Timing.
Unit 3B (1-Bed):
Bought Jul 2010: $1,150,000
Sold Apr 2015: $1,810,000
Result: +57% over 5 years.
Driver: Market Regime Timing.
9. RISKS & RED FLAGS
Red Flag: The "Lost Decade" of Value. There is essentially no price growth for buyers who entered after 2016. The building has found a resistance level at ~$1,600–$1,700 PPSF and refuses to break it.
Risk: Decoupling. The NYXRCSA Index is at ~330 (an all-time high). This building is trading at 2016 levels. This divergence suggests the market views the asset as fully valued or slightly less desirable than the broader market average recently.
Opportunity: The rental engine is firing on all cylinders. Buying at a discount (e.g., Unit 2B at $988 PPSF in 2024) allows for massive upside yield capture.
10. EXECUTIVE SUMMARY
The American Felt Building (114 East 13th St) is a historic loft condo that has transitioned from a high-growth asset to a Yield-Oriented store of value. Post-sponsor analysis shows that while early buyers (2004–2010) doubled their equity, buyers from the 2016–2017 peak are currently exiting at flat prices or nominal losses, having missed the broader market rally (NYXRCSA +22%). Despite this equity stagnation, the building is a rental powerhouse, with 1-bedrooms commanding $8,400+ ($82 PPSF) and penthouses topping $119 PPSF. Investors should approach this as a defensive income play, targeting 5.5%+ yields, but should not underwrite significant short-term appreciation.
DISCLOSURES & NORMALIZATION
Sponsor Normalization:
No recent transactions (2020–2025) required sponsor normalization as the building is a mature resale (built 1906, sales data provided starts 2002).
Data Note:
Unit 2B (2024): The sale at $1.2M ($988 PPSF) appears to be a distress or outlier sale compared to the building median of ~$1,600. It was included to demonstrate volatility but flagged in analysis.
NYXRCSA Comparison: Benchmark index values used: ~270 (2017 avg) vs 330 (Nov 2025). Building performance: Flat/Negative.