Cocoa Exchange (1 Wall Street Court)
1. BUILDING OVERVIEW (ANALYST FRAMING)
Type: Condo Conversion (Converted 2006, Built 1904)
Scale: 126 Units, 15 Floors
Classification: Yield-Oriented (Stagnant)
Analyst Justification: The Cocoa Exchange exemplifies a "bond-like" asset that generates reliable yield but fails to capture market appreciation. While the NYXRCSA Benchmark indicates the broader NYC market is at historic highs (~330 index), this building trades at valuations remarkably similar to its 2006–2007 sponsor pricing, particularly for 2-bedroom units. The building reportedly underperforms the Financial District sub-market by ~13.8%. It is a functional income generator ($100+ PSF rents for studios) but a wealth preservation trap for equity.
2. UNIT MIX & COMPOSITION
Analysis based on 251 recorded sales and 198 rental transactions.
Studios (~360–460 SF): High Volume. The building is heavily weighted toward efficient, investor-grade studios.
1-Beds (~675–1,024 SF): Moderate presence.
2-Beds (~928–1,049 SF): Core Inventory. These compact 2-beds trade frequently but show the weakest price retention.
3-Beds (~1,495 SF): Niche (04/05 lines).
Impact: The high density of small units creates a "hotel-lite" environment. This commoditization ensures rental liquidity (median rental DOM is low) but caps resale upside, as buyers have ample substitute inventory.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
Sponsor Normalization: A high volume of 2006–2008 sales were marked "No Listing" or had DOM < 30 days (Sponsor/Bulk). These were excluded from resale liquidity metrics.
A. Liquidity (Resale Speed) Liquidity is Mixed. Small units clear; larger units lag.
Median Resale DOM: ~60-70 Days (Efficient for priced-to-market units).
Fastest:
Unit 1106 (Studio): 26 Days (Jan 2026)
Unit 609 (2 Bed): 19 Days (Feb 2023)
Unit 1301 (2 Bed): 32 Days (Jun 2023)
Slowest (Stagnation):
Unit 405 (3 Bed): 241 Days (Jul 2025)
Unit 904 (Studio): 181 Days (Nov 2023)
Unit 1406 (Studio): 165 Days (Apr 2024)
Conclusion: Liquidity is price-dependent. 2-Beds priced near $1,000 PSF clear in <60 days. Aspirational pricing (e.g., Unit 405 attempting $1.5M) leads to 8-month delays.
B. Price Strength & Appreciation
Trend: Flat (2-Beds) to Modest Growth (Studios).
Studio Baseline: ~$1,400–$1,500 PSF (Up from ~$1,100 in 2006).
2-Bed Baseline: ~$950–$1,050 PSF (Flat vs ~$950 in 2006).
Observation: The spread between unit types is widening. Studios command a significant PSF premium over larger units due to their high rental yield efficiency.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
2006-2007 (Sponsor): 2-Beds ~$950 PSF. Studios ~$1,100 PSF.
2014-2016 (Peak Attempt): 2-Beds ~$1,100–$1,200 PSF.
2024-2025 (Current): 2-Beds ~$1,000 PSF. Studios ~$1,400–$1,550 PSF.
Driver: Unit Size / Unit Mix Imbalance. Small units have outperformed because they fit the "high yield / low lump sum" investor profile. 2-Bedroom units have stagnated for nearly 20 years.
5. RENT CAPTURE ANALYSIS
Rent/SF:
Studios: $100+ PSF (e.g., Unit 806 @ $101 PSF, Unit 503 @ $108 PSF).
2-Beds: $60–$70 PSF (e.g., Unit 501 @ $70 PSF, Unit 809 @ $62 PSF).
Leakage (DOM): Low.
Recent Rental DOMs: 9, 26, 12, 5, 21, 39 days.
Capture Rate: Excellent. The building absorbs tenants quickly.
Yield Thesis:
Buy Studio (e.g., Unit 1106) at $575k.
Rent at $3,100/mo ($37.2k/yr).
Gross Yield: ~6.5%.
Compare: 2-Bed Yield is lower (~6.3%) with higher capex risk.
Conclusion: The "Cocoa Exchange" is a rental machine. Studio rents hitting $100 PSF is the building's standout metric, significantly outperforming its sales value.
6. B³ SCORING SYSTEM (0–100)
Metric | Score | Rationale |
Liquidity | 60 | Moderate. Small units move fast (26 days), but 3-beds and overpriced inventory drag the median. |
Rent Capture | 82 | Excellent. Studios earning $100+ PSF with <30 days DOM is top-tier performance for FiDi. |
Appreciation | 20 | Poor. 2-Bedroom units show zero nominal growth over 15-20 years. Studios show mild growth (CAGR ~2%). |
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score: 52.6 / 100 (Calculated: 60×0.35 + 82×0.30 + 20×0.35)
Category: Yield-Oriented (Stagnant) This building is a defensive income play. It is not an appreciation asset. Buy here to park cash and collect rent, not to build equity.
8. TRANSACTION EXAMPLES
A. Resale Depreciation / Stagnation (Capital Erosion) Driver: Market Regime Timing (Flat Performance in Bull Market)
Unit 405 (3 Bed)
Sold: Jul 2025 for $1,455,000
Sold: Apr 2014 for $1,460,000
Result: -$5,000 (Flat/Loss) in 11 years.
Unit 309 (2 Bed)
Sold: Aug 2024 for $890,000
Sold: Sep 2016 for $1,078,000
Result: -$188,000 (-17.4%) in 8 years.
Unit 1001 (2 Bed)
Sold: Aug 2022 for $999,000
Sold: Jul 2014 for $1,200,000
Result: -$201,000 (-16.7%) in 8 years.
Unit 909 (2 Bed)
Sold: Feb 2022 for $880,000
Sold: Aug 2006 for $865,512 (Sponsor)
Result: Flat (+1.6%) in 15.5 years. (Massive real loss).
B. Resale Appreciation (Modest/Long-Term) Driver: Buying Distress / Studio Strength
Unit 1106 (Studio)
Sold: Jan 2026 for $575,000
Sold: Oct 2006 for $380,250 (Sponsor)
Result: +$194,750 (+51%) in 19.5 years. (CAGR ~2.1%).
Unit 704 (Studio)
Sold: Aug 2018 for $625,000
Sold: Oct 2006 for $491,790
Result: +$133,210 (+27%) in 12 years.
Unit 1301 (2 Bed)
Sold: Jun 2023 for $1,075,000
Sold: May 2008 for $950,000
Result: +$125,000 (+13%) in 15 years. (CAGR < 1%).
Unit 209 (1 Bed)
Sold: Jan 2024 for $670,000
Sold: May 2013 for $647,607
Result: +$22,393 (+3.5%) in 11 years.
9. RISKS & RED FLAGS
The 2-Bedroom Trap: 2-bedroom units (e.g., 309, 405, 909) consistently show flat or negative returns over 10-15 year holds. Do not buy these expecting growth.
Benchmark Decoupling: The NYXRCSA index is at ~330 (High), yet the building is trading at 2006/2014 levels. This structural underperformance (-13.8% vs neighborhood) suggests the asset is not capturing any market beta.
Studio Commoditization: While studios yield well, the sheer volume means sellers compete on price.
10. EXECUTIVE SUMMARY
Cocoa Exchange (1 Wall Street Court) is a Yield-Oriented (Stagnant) asset that behaves like a high-yield bond. While the broader NYC market has tripled since 2000 (NYXRCSA ~330), this building has seen zero nominal appreciation for 2-bedroom units over the last 15-20 years. Studios have fared slightly better, appreciating at ~2% annually. The building's core strength is its rental engine: studios command $100+ PSF and lease quickly (<30 days), offering investors consistent 6.5%+ gross yields. It is a "buy-to-rent" asset where equity preservation is uncertain, and growth is non-existent.
B³ SCORECARD
Category: Yield-Oriented
Composite Score: 59
Liquidity: 65
Median Resale DOM: 64 Days
Rent Capture: 80
Appreciation: 35
Unit Mix Summary: Studio/1-Bed: 63% of Activity (High velocity / Median DOM 55 Days) 2-Bed+: 37% of Activity (Variable liquidity / High DOM risk of 133 Days for 3 beds)
DISCLOSURES:
Sponsor Normalization: Approximately ~80 sales from 2006–2008 marked "No Listing" or with short DOM were treated as Sponsor baselines and excluded from Resale Liquidity metrics.
Benchmark: Analysis references NYXRCSA Index (330.28) to highlight the building's stagnation against a rising market.