Gallery Apartments (32 East 76 Street)

1. BUILDING OVERVIEW (ANALYST FRAMING)

Gallery Apartments (32 East 76 Street) is a boutique Postwar Resale Condo (Built 1982) located in the Upper East Side market. Standing 15 floors tall with only 30 units, it functions as a highly volatile, full-service asset offering part-time residency utility rather than consistent capital preservation.

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

This classification is justified by a severe structural decoupling from broader market appreciation. While the NYXRCSA index reached an all-time high of 331.14 in late 2025, Gallery Apartments has exhibited nominal capital destruction over decade-long holding periods. The definitive signal is Unit 1505, which sold in Jan 2014 for $2.65M and resold in Oct 2024 for $2.30M—a realized -13.2% nominal loss despite a 10-year holding period,. Furthermore, Unit 505 suggests extreme volatility, trading at $2.90M in 2013 and reselling for $2.10M in 2021,. Value is currently derived from utility and rental potential ($65–$77 PPSF) rather than equity compounding, with the building explicitly flagged as underperforming its sub-neighborhood by 7.4%.

2. UNIT MIX & COMPOSITION

Based on transaction-weighted data from 37 recorded sales, the inventory is evenly split between 1-Bedroom and 2-Bedroom residences,:

• 1BR: ~45% of activity (16 sales). Sizes 850–979 sqft.

• 2BR: ~50% of activity (17 sales). Dominant Inventory Type. Sizes 1,300–1,491 sqft.

• 3BR/PH: ~5% of activity (1 sale). Size 2,808 sqft.

Influence on Behavior: The building behaves like a binary asset. The 2-bedroom "05" line (1,308 sqft) acts as the primary bellwether for valuation, showing high volatility (Driver 1). The 1-bedroom units provide liquidity but have traded in a wide, erratic band ($1,072 to $1,611 PPSF) depending on the year,. The lack of unit diversity beyond 2-bedrooms limits the building's ability to retain families, forcing higher turnover.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

Note: Pursuant to the Sponsor Normalization Rule, sales from 2003–2006 marked "No Listing" (e.g., 504, 505, 1405, 1402) are treated as Conversion/Sponsor transfers and excluded from resale liquidity metrics,.

A. Liquidity

• Fastest: Unit 1505 sold in 4 days (2024). Unit 702 sold in 5 days (2014).

• Slowest: Unit 1403 took 369 days (2018). Unit 1104 took 277 days (2018). Unit 1505 took 247 days (2005).

• Median Resale DOM: Recent data shows massive dispersion. While the building-wide median is 87 days, 1-bedroom units in soft markets have historically languished for nearly a year (369 days), creating a "liquidity trap" risk.

B. Price Strength

• Ceiling (Peak): Pricing power peaked in 2013–2014. Unit 505 traded at $2,230 PPSF (2013) and Unit 1505 at $2,025 PPSF (2014).

• Baseline (Current): The 2024–2025 baseline has reset significantly lower to $1,299–$1,758 PPSF.

  • Unit 605: $1,299 PPSF (2025).

  • Unit 1505: $1,758 PPSF (2024).

  • Unit 805: $1,605 PPSF (2025).

• Regression: Current trades are clearing ~15–35% below the building's 2014 nominal PPSF peaks.

C. Appreciation

• Negative Trend: Unit 1505 realized a -$350,000 nominal loss between 2014 and 2024,.

• Volatility: Unit 805 gained +16.6% between 2021 ($1.8M) and 2025 ($2.1M), but this followed a period of stagnation from 2010 ($1.4M),.

• Stagnation: Unit 1101 sold for $999k in 2012 and $1.2M in 2019, a modest 2.8% CAGR that barely tracked inflation,.

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

The building is in a Structural Correction phase.

• Sponsor/Early Baseline (2005–2006): Sales cleared $1,097–$1,423 PPSF.

• Cycle Peak (2013–2014): Sales surged to $2,025–$2,230 PPSF (Units 1505, 505).

• Correction (2018–2021): Prices collapsed to $1,072–$1,376 PPSF (Units 1403, 805),.

• Recovery Attempt (2024–2025): Prices have recovered slightly to $1,600–$1,758 PPSF, but remain well below 2014 levels. Unit 605 clearing at $1,299 PPSF in late 2025 suggests weakness persists.

• Trend: Bearish. Despite the NYXRCSA index rising to 331.14 (All-Time High), Gallery Apartments units are trading below their 10-year-ago valuations.

5. RENT CAPTURE ANALYSIS

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

A. Rent Capture

• Unit 505 (2017):

  • Rent: $9,500 ($77 PPSF).

  • DOM: 197 days.

  • Effective Rent: ~$4,371/mo (Catastrophic Failure due to vacancy).

• Unit 702 (2021):

  • Rent: $8,000 ($64 PPSF).

  • DOM: 339 days.

  • Effective Rent: ~$570/mo (Yield destroyed by near-yearlong vacancy).

• Unit 1505 (2022/2023):

  • Rent: $8,250 ($75 PPSF).

  • DOM: 78 days (2022).

  • Status: Stabilized.

B. Rent Appreciation

• Deflation: Unit 505 rented for $9,500 in 2017 and $7,995 in 2019. -15.8% Nominal Decline over 2 years,.

• Stagnation: Unit 1505 rented for $8,250 in Jan 2022 and $8,250 in Apr 2023 (0% growth).

6. B³ SCORING SYSTEM (0–100)

• Liquidity Score: 40/100 (Extreme inconsistency. While some units sell in <10 days, others linger for 277–369 days. Rental liquidity is dangerous with documented 197–339 day vacancies,).

• Rent Capture Score: 45/100 (High nominal PPSF [$65–$75] completely negated by history of massive vacancy friction and rent deflation [-15% on Unit 505]),.

• Appreciation Score: 20/100 (Confirmed double-digit nominal loss on Unit 1505 over a decade. Volatile swings. Zero Beta vs NYXRCSA),.

• Composite Score: 33.5/100.

7. TRANSACTION EXAMPLES

Resale Depreciation (Capital Destruction):

• Unit 1505 (2BR / 1,308 sqft):

  • Sold Jan 2014: $2,650,000 ($2,025 PPSF).

  • Sold Oct 2024: $2,300,000 ($1,758 PPSF).

  • Result: -13.2% Nominal Loss ($350k) over 10.7 years. Driver: 1 (Market Regime).

Resale Appreciation (Timing Alpha):

• Unit 805 (2BR / 1,308 sqft):

  • Sold Oct 2021: $1,800,000 ($1,376 PPSF).

  • Sold Oct 2025: $2,100,000 ($1,605 PPSF).

  • Result: +16.7% Nominal Gain over 4 years. Driver: 1 (Bought at Correction).

Resale Volatility (Long Term):

• Unit 702 (2BR / 1,491 sqft):

  • Sold Jul 2014: $1,975,000 ($1,324 PPSF).

  • Listed/Rent Status 2021: Struggled to rent for 339 days.

  • Observation: Unit failed to maintain liquidity parity with 2014 market conditions.

Rent Deflation:

• Unit 505 (Rental):

  • Jul 2017 Rent: $9,500.

  • Nov 2019 Rent: $7,995.

  • Result: -15.8% Nominal Decrease over 2.3 years. Driver: 1.

8. RISKS & RED FLAGS

• Wealth Trap: Buying at 2013–2014 peak prices ($2,000+ PPSF) resulted in realized losses by 2024 (Unit 1505).

• Liquidity Trap: Rental units have historically sat for 197 to 339 days, destroying annual yield,.

• Pricing Disconnect: The building explicitly "Underperforms Upper East Side by 7.4%", yet sellers often ask for premium pricing (e.g., Unit 1401/1402 "No Listing" trades at $2,200 PPSF appear as outliers compared to market reality of ~$1,600 PPSF).

9. EXECUTIVE SUMMARY

Gallery Apartments (32 East 76 Street) is a Yield-Oriented boutique condo that functions as a wealth trap for equity investors who entered during the 2013–2014 peak. Despite the NYXRCSA index hitting an all-time high of 331.14 in 2025, resale values in this building have structurally regressed. Unit 1505 realized a 13.2% nominal loss after a nearly 11-year hold ($2.65M $\to$ $2.30M),. While the building offers utility with rentals trading near $70 PPSF, the income stream is unstable, evidenced by Unit 505's 15% rent decline and vacancy periods exceeding 300 days for other units. Investors should view this as a distressed asset, avoiding entry above $1,400 PPSF to mitigate the proven risk of capital erosion.

B³ SCORECARD

• Liquidity Score: 40

• Rent Capture Score: 45

• Appreciation Score: 20

• Composite Score: 33.5

• Category: Yield-Oriented (Distressed/Correction)

• Unit Mix: 50% 2BR / 45% 1BR / 5% 3BR [Transaction Weighted]

• Sponsor Normalization: Sales from 2003–2006 with "No Listing" (e.g., Units 504, 505, 1405, 1402) treated as Sponsor/Conversion Baseline.