GRAMERCY PARK HABITAT (205 EAST 22ND STREET)

1. BUILDING OVERVIEW (ANALYST FRAMING)

• Building Type: Prewar Condo (Converted / Built 1896)

• Scale: 65 Units / 7 Floors

• Classification: Hybrid (Yield/Defensive)

Justification: Gramercy Park Habitat functions as a "Store of Value" asset rather than a high-growth vehicle in the current cycle. While the NYXRCSA benchmark has reached all-time highs (Index ~330 in Nov 2025), resale values in this building have largely plateaued since the 2015–2017 market peak. Long-term holders (10+ years) have seen massive compounding, but medium-term holders (2015–2022) are experiencing flat nominal returns, lagging the broader inflation seen in the index. The building exhibits solid liquidity for smaller units and reliable Rent Capture ($65–$75/SF), categorizing it as a defensive hybrid asset.

Sponsor Normalization Disclosure:

• Transactions Reclassified: 0.

• Context: The building is a mature prewar condo. The dataset provided covers 2003–2025. While 2003–2005 sales show sponsor-like volume, the analysis focuses on the 2015–2025 resale capability. No recent bulk sales require normalization.

2. UNIT MIX & COMPOSITION

The inventory is balanced but leans toward efficient 1-Bedroom units, supporting liquidity.

• 1-Bedrooms: ~23 Sales recorded (~39% activity). Dominant Liquidity.

• 2-Bedrooms: ~14 Sales recorded (~24% activity).

• 3-Bedrooms+: ~12 Sales recorded (~20% activity).

Analysis:

• Liquidity Stability: The high volume of 1-bedroom units (~900 SF) keeps the building liquid. These units typically clear fast (median < 50 days).

• Volatility: Larger units (3-bed+) are prone to significant liquidity drag (e.g., Unit 1AB took 164 days; Rental 6L took 268 days), creating a bifurcated market profile.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

A. Liquidity (Speed) Speed is highly dependent on unit size. Small units move efficiently; large units struggle.

1. 1-Bedrooms: Median DOM ~24–40 Days. (Fast).

   • Examples: Unit 3B (13 Days), Unit 4H (24 Days), Unit 2D (68 Days).

2. 2-Bedrooms: Median DOM ~40–50 Days. (Healthy).

   • Examples: Unit 1C (21 Days), Unit PHE (42 Days), Unit 3D (21 Days).

3. Large/Combined Units: Median DOM 100+ Days. (Slow).

   • Examples: Unit 1AB (164 Days), Unit 6J (176 Days).

B. Price Strength & Dispersion

• Building Median PPSF: ~$1,300–$1,500 (Recent Trades).

• Line Dispersion:

  • Renovated Premium: Unit 3D traded at $1,703 PPSF in 2023, significantly above the building median, likely due to renovation (Line-level premium persistence).

  • Discount: Unrenovated or lower floor units (e.g., 6J) trade near $1,100 PPSF.

  • Large Unit Discount: Unit 1AB (3-Bed) traded at $1,103 PPSF, suggesting a lack of premium for bulk square footage in this building.

C. Appreciation Plateaued.

• Trend: The building saw explosive growth from 2009–2017 (doubling in value) but has been effectively flat from 2017–2023.

• Divergence: While NYXRCSA continues to rise, this building's pricing power has stalled at the ~$1,600 PPSF resistance level.

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

• Phase 1 (Growth): 2009–2015. Massive appreciation. Unit 2D went from $800k (2009) to $1.6M (2017).

• Phase 2 (Peak/Plateau): 2015–2017. Prices hit $1,500–$1,600 PPSF.

• Phase 3 (Stagnation): 2018–2022. Resale prices hovered in the $1,400–$1,600 range.

• Phase 4 (Renovation Pop): 2023. Specific renovated units (3D) pushed to $1,700 PPSF, but the baseline remains flat.

Conclusion: Cyclical Stagnation. The building is retaining value but not compounding it in the current regime.

5. RENT CAPTURE ANALYSIS

A. Rent Capture by Unit Type The building generates consistent, moderate yields. It is a "workhorse" rental building.

• 1-Bedrooms (approx. 800–900 SF):

  • Rent: ~$4,500–$5,550/mo.

  • Rent/SF: $66–$74/SF.

  • DOM: Fast (5–26 Days).

  • Capture: High.

• 2-Bedrooms (approx. 1,300–1,600 SF):

  • Rent: ~$8,000–$11,000/mo.

  • Rent/SF: $73–$82/SF.

  • DOM: Variable (15 days to 85 days).

• Large Units (3-Bed+):

  • Rent: ~$15,000–$16,000/mo.

  • Rent/SF: $64–$95/SF.

  • Risk: Unit 6L took 268 days to rent in 2025. Significant leakage.

B. Effective Rent Calculation (Example)

• Unit 3J (Oct 2024):

  • Rent: $5,550/mo.

  • DOM: 5 Days.

  • Effective Annual Rent = $(5,550 \times 12) \times (365 - 5) \div 365 = $65,687$.

  • Efficiency: 98.6%. Excellent.

6. B³ SCORING SYSTEM (0–100)

A. Liquidity Score: 65

• Speed: Small units move fast (~30 days). Large units drag significantly (>150 days).

• Depth: Turnover is healthy for a boutique building.

B. Rent Capture Score: 78

• Efficiency: $65–$75/SF is solid for a prewar condo, though below new dev levels ($90+).

• Absorption: Generally fast, with isolated outliers for expensive units.

C. Appreciation Score: 55

• Magnitude: Long-term is excellent; Medium-term (last 7 years) is flat.

• Durability: The asset defends value well but has struggled to break 2015 highs.

7. COMPOSITE SCORE & CLASSIFICATION

Composite Score = 65

• $(65 \times 0.35) + (78 \times 0.30) + (55 \times 0.35) = 22.75 + 23.4 + 19.25 = 65.4 \approx 65$

Category Assignment: Hybrid (Yield/Defensive)

• Criteria: All scores hover near the 60–70 range. It balances liquidity, income, and value preservation without excelling in any single dimension.

8. TRANSACTION EXAMPLES

Resale Stagnation (The "Plateau" Effect)

1. Unit 2D:

   • Buy: $1,699,000 (Nov 2017) (Data check: Listed $1.699M, Sold $1.6M).

   • Sell: $1,650,000 (Dec 2022).

   • Result: +3.1% Nominal Gain in 5 years.

   • Real Result: Loss after inflation and fees.

   • Driver: Market Regime Timing. (2017 Peak vs 2022).

2. Unit 1C:

   • Buy: $2,100,000 (Jun 2015).

   • Sell: $2,200,000 (Jul 2021).

   • Result: +4.7% Nominal Gain in 6 years. (CAGR ~0.7%).

   • Driver: Market Regime Timing.

3. Unit 3D (The Renovation Flip):

   • Buy: $1,160,000 (Jan 2021).

   • Sell: $1,775,000 (Mar 2023).

   • Result: +53% Gain in 2 years.

   • Driver: Line-level Premium Persistence (Likely renovation/flip given the massive delta in a flat market).

Long-Term Appreciation (Historical Power) 4. Unit 2D (Long Hold): Buy: $800,000 (Jun 2009). Sell: $1,600,000 (Nov 2017). Result: +100% (Doubled) in 8 years. Driver: Market Regime Timing. (Bought at GFC bottom, sold at peak).

9. RISKS & RED FLAGS

• The "2015 Ceiling": The building has struggled to consistently break the pricing established in 2015–2017. Buyers should be wary of paying significant premiums over $1,600 PPSF unless the unit is heavily renovated (like Unit 3D).

• Large Unit Liquidity: Do not expect a quick exit for 3-bedroom units. Data (Unit 1AB, 6J) suggests marketing times of 5–6 months.

• Rental Drag on High End: The 268-day rental listing for Unit 6L warns that the high-end rental market ($15k+) is thin in this building.

10. EXECUTIVE SUMMARY

Gramercy Park Habitat (205 East 22nd St) is a Hybrid / Defensive prewar condo that excels at value preservation but currently lacks appreciation momentum. While the building delivered massive returns for buyers between 2009 and 2017, resale performance from 2015–2023 has been largely flat, with nominal gains of only 3–5% over 5-year hold periods. The asset functions reliably as a rental vehicle ($65–$75/SF), particularly for 1-bedroom units which absorb quickly. It is a "safe harbor" asset that avoids the volatility of new development but currently underperforms the NYXRCSA growth benchmark.

B³ SCORECARD

• Building: Gramercy Park Habitat (205 East 22nd St)

• Category: Hybrid (Yield/Defensive)

• Composite Score: 65

Unit Mix Summary:

• 1-Bed: 39% of Sales (Liquidity Engine)

• 2-Bed: 24% of Sales (Stable)

• 3-Bed+: 20% of Sales (Liquidity Drag)