Downing Court (63 Downing Street)
1. BUILDING OVERVIEW (ANALYST FRAMING)
Type: Post-war Resale Condo (Built 1987)
Scale: 32 Units, 10 Floors
Classification: Yield-Oriented
Justification: Post-sponsor data reveals a classic "income-over-growth" profile. While the building occupies a prime Greenwich Village location, its appreciation performance has been structurally stagnant for nearly a decade. Sales in 2025 (Unit 7D) are trading at valuations only marginally higher than 2017, and significant capital losses occurred between 2016 and 2021. Conversely, Rent Capture is elite, with recent leases achieving >$100/SF and clearing rapidly (DOM < 5 days). The asset generates cash flow efficiently but fails to provide capital compounding that tracks the NYXRCSA benchmark.
2. UNIT MIX & COMPOSITION
The unit mix is transaction-weighted based on recorded history.
1 Bed: ~33% of activity (Lines A, D). High velocity, rental heavy.
2 Bed: ~42% of activity (Lines B, C). The core liquidity engine.
3+ Bed/PH: ~25% of activity (Combos/PH). High volatility.
Analysis: The building is dominated by 1 and 2-bedroom units. The 1-bedroom units (approx. 850 sq ft) function as high-velocity rental products. The larger 3-bedroom units (e.g., 9C) suffer from Liquidity Shift, with DOMs expanding dramatically (300+ days) compared to the smaller units.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
A. Liquidity (Post-Sponsor)
Fastest: Unit 7D (93 Days sale, but 3 Days rental), Unit 3B (29 Days, 13 Days).
Slowest: Unit 9C (331 Days), Unit 2A Rental (243 Days).
Observation: Small units clear efficiently. Large, high-price-point units (Unit 9C asked $4.495M, sold $3.3M) face severe resistance, sitting on the market for nearly a year.
B. Price Strength
Baseline PPSF: $1,600 – $2,000 PPSF.
Discount: The building underperforms the Greenwich Village sub-neighborhood by 3.6%.
Ceiling: Pricing struggles to break $2,200 PPSF sustainably. Unit 2C sold for $2,180 PPSF in 2018; Unit 7D sold for only $1,982 PPSF in 2025.
C. Appreciation
Mean-Reverters: Most lines are mean-reverting. Unit 3B sold for $2.1M in 2016 and resold for $2.064M in 2021 (Nominal Loss).
Compounding: Non-existent in the last cycle. Recent exits are flat or negative compared to 2015-2017 entries.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
2013-2016 (Peak Volume): Sales regularly hit $2,100–$2,300 PPSF (Unit 2B, Unit 9B).
2020-2021 (Correction): Prices dipped significantly. Unit 9C cleared at $3.3M (approx. $1,600 PPSF implies rough calc based on comps), down from aspirational pricing.
2023-2025 (Stagnation): Recovery is muted. Unit 7D (2025) sold for $1,982 PPSF, failing to reclaim the $2,180+ highs seen in 2018.
Conclude: Flat / Cyclical. The building has not participated in the post-pandemic inflation rally seen in the NYXRCSA index (current 330.28).
5. RENT CAPTURE ANALYSIS
A. Rent Capture by Line Rents are the building's strongest metric, showing efficiency and high value per foot.
Unit 7D (1 Bed, 850 SF):
Leased May 2024: $7,800/mo. DOM: 3 Days.
Rent PPSF: $110/SF.
Effective Rent: ~$7,735 (virtually no vacancy loss).
Unit 3B (2 Bed, 1200 SF):
Leased Jan 2023: $9,200/mo. DOM: 98 Days.
Rent PPSF: $92/SF.
B. Rent Appreciation
Unit 7D:
2020: $4,750 $\rightarrow$ 2024: $7,800. +64% Growth over 4 years.
Unit 5B:
2015: $4,500 $\rightarrow$ 2017: $4,500. Flat.
Analysis: While sales prices stagnated, rental values for 1-beds exploded post-2020, confirming Market Regime Timing favors yield over equity growth here.
6. B³ SCORING SYSTEM (0–100)
A. Liquidity Score: 65/100
Speed: Moderate. Median sales DOM is 62 days.
Consistency: Mixed. Small units move fast; larger units (9C) drag the score down with 300+ day DOMs.
B. Rent Capture Score: 88/100
Efficiency: High ($110/SF for 1-beds is excellent for a 1987 vintage).
Absorption: Elite for 1-beds (DOM 3 days). Slower for 2-beds.
C. Appreciation Score: 40/100
Magnitude: Poor. Multiple resales show nominal losses or <2% CAGR over 8-year holds.
Durability: Weak. Prices have not recovered to 2016 peaks.
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score: $(65 \times 0.35) + (88 \times 0.30) + (40 \times 0.35) = 22.75 + 26.4 + 14.0 =$ 63.15
Category: Yield-Oriented (Rent Capture is the only metric performing at an "A" level. Appreciation is failing, preventing a "Hybrid" classification.)
8.TRANSACTION EXAMPLES
Resale Appreciation (Long Term Hold Only)
Unit 7D (1 Bed):
Bought Mar 2007: $925,000
Sold Jan 2017: $1,520,000
Change: +64% (CAGR ~5%).
Driver: Market regime timing (Captured the 2013-2015 market boom).
Unit 3D (1 Bed):
Bought May 2005: $751,500
Sold Jul 2014: $1,263,800
Change: +68%.
Driver: Market regime timing (Pre-GFC to 2014 Peak).
Unit 2B (2 Bed) - Pre-2013:
Bought (Est. prior 2005 based on vintage): Low Basis
Sold Jun 2013: $2,300,000
Change: Significant gain assumed.
Driver: Market regime timing.
Unit 7D (1 Bed) - Recent:
Bought Jan 2017: $1,520,000
Sold Feb 2025: $1,685,000
Change: +10.8% (CAGR ~1.3%). Barely positive.
Driver: Market regime timing (Stagnant market 2017-2025).
Resale Depreciation / Flat (The Norm Since 2015)
Unit 2B (2 Bed):
Bought Jun 2013: $2,300,000
Sold Mar 2017: $2,200,000
Change: -4.3% (Loss).
Driver: Market regime timing (Buying into strength, selling into softness).
Unit 3B (2 Bed):
Bought Jun 2016: $2,100,000
Sold Jun 2021: $2,064,000
Change: -1.7% (Loss).
Driver: Market regime timing (Peak 2016 valuation vs. COVID recovery).
Unit 9C (3 Bed):
Listed 2021: $4,495,000
Sold Mar 2021: $3,300,000
Change: -26.5% discount from ask.
Driver: Liquidity shift (331 days on market forced deep discount).
Unit 5D (Studio/1Bed):
Transaction 2020: $1,300,000 (No Listing - likely distress or off-market).
Context: Low PPSF compared to building median.
Driver: Market regime timing (2020 COVID impact).
9. RISKS & RED FLAGS
Appreciation Trap: Multiple data points (Unit 2B, 3B) show that buying in "strong" markets (2013-2016) led to capital losses upon exit. The building does not retain premium pricing.
Liquidity Cliff for Large Units: While 1-beds sell, the 3-bed inventory (e.g., 9C) can become illiquid traps, requiring 11 months to find a buyer and necessitating massive price cuts.
Underperformance: The building statistically underperforms its own sub-neighborhood by 3.6%.
10. EXECUTIVE SUMMARY
63 Downing Street is a Yield-Oriented asset that excels at income generation while failing to deliver capital appreciation. Post-2016 behavior is characterized by price stagnation; multiple resale lines (B and D) have traded flat or at a loss over 5-8 year holding periods, significantly lagging the NYXRCSA benchmark. However, the building is a rental powerhouse, with 1-bedroom units commanding over $110/SF and leasing in under a week. It is an ideal "cash cow" for landlords but a "value trap" for buyers expecting equity growth.
B³ SCORECARD
Metric | Score |
Liquidity | 65 |
Rent Capture | 88 |
Appreciation | 40 |
COMPOSITE | 63 |
Category | Yield-Oriented |
Unit Mix (Transaction Weighted):
1 Bed: 33% (High Velocity)
2 Bed: 42% (Dominant)
3+ Bed: 25% (Illiquid/Volatile)