11 Hancock Place

1. BUILDING OVERVIEW (ANALYST FRAMING)

• Building Type: New Development Condo (Built 2020).

• Scale: 12 Floors, 71 Units.

• Primary Category: Price Discovery / Yield-Oriented.

Justification: Post-sponsor data indicates a building trapped in an agonizing initial price-discovery and normalization phase. Initial sponsor sales attempted to clear at elevated pricing ($1,250–$1,480+/SF) between 2021 and 2022. However, the market has demonstrated massive resistance, resulting in devastating DOM drag (frequently 150 to 900+ days) just to process the primary inventory. The building’s sole recorded mature resale (PH102) locked in a nominal loss in 2026. This severe friction and early mean-reversion completely decouples the asset from the NYXRCSA benchmark, which pushed to historic highs of 330–332 in late 2025 and early 2026. With capital preservation actively failing on the secondary market, the building functions solely as a Yield-Oriented asset via its rental capture on smaller footprints.

2. UNIT MIX & COMPOSITION

Based on transaction-weighted historical data across 71 explicitly categorized layouts:

• Studio: ~17% of sales volume (12 transactions).

• 1BR: ~31% of sales volume (22 transactions).

• 2BR: ~34% of sales volume (24 transactions).

• 3BR/4BR+: ~13% of sales volume (9 transactions).

Influence on Liquidity & Rent Behavior: The building presents a relatively balanced unit mix, but severe illiquidity plagues every tier. The 1BR and Studio segments, which typically act as high-velocity liquidity engines in functional buildings, suffer from punishing 144-day and 182-day median DOMs respectively. The 2BR core dictates the deepest structural drag, sitting for an extraordinary 332-day median. This unit-agnostic friction suggests that the sponsor's initial price anchoring was universally rejected by the submarket, drastically increasing holding costs for anyone attempting to exit.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

A. Liquidity

• Fastest Resale Velocity: True liquidity does not exist here. The fastest standard segment (1BRs) still endures a 144-day median DOM to find clearing bids.

• Slowest Resale Velocity: The building's core 2BR layouts sit for chronic, destructive durations, yielding a 332-day median. Outliers demonstrate extreme market rejection: Unit 709 sat for 1,049 days, Unit 501 for 920 days, Unit PH201 for 675 days, and Unit 908 for 656 days.

B. Price Strength

• Initial sponsor premium stacks have collapsed. Units that successfully commanded $1,300–$1,450/SF at launch have violently corrected to a baseline roughly settling between $1,140–$1,250/SF today.

C. Appreciation

• Lines are actively mean-reverting. The building currently exhibits negative structural appreciation. Value destruction is consistent across early resale data and trailing sponsor clears, driven entirely by the deflation of the initial 2021–2022 pricing.

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

• 2021–2022 (Sponsor Launch): Heavily delayed initial volume clearing at $1,250–$1,480/SF.

• 2023–2026 (Drawdown / Normalization): A drastic reset, marked by extreme DOMs, settling heavily downward to $1,148–$1,259/SF. Conclusion: Depreciating / Mean-Reverting. Value is currently adjusting downward from original sponsor inflation, entirely failing to track the continuous macro growth trend proven by the NYXRCSA index from 2024 to 2026.

5. RENT CAPTURE ANALYSIS

A. Rent Capture by Line & Unit Type

• Formula: Effective Annual Rent = Achieved Rent × (365 − Rental DOM) ÷ 365.

• Example 1 (High Efficiency): Unit 606 (Studio). Achieved $3,200/mo. DOM 22. Effective Rent = $3,200 × (365 - 22) ÷ 365 = $3,007/mo.

• Example 2 (Moderate Leakage): Unit 401 (1BR). Achieved $4,495/mo. DOM 73. Effective Rent = $4,495 × (365 - 73) ÷ 365 = $3,596/mo.

• Example 3 (Severe Leakage): Unit 904 (Studio). Achieved $3,350/mo. DOM 88. Effective Rent = $3,350 × (365 - 88) ÷ 365 = $2,542/mo.

B. Rent Appreciation Nominal rent per SF is extremely strong for the submarket, routinely commanding $64 to $86/SF. However, rental efficiency is highly volatile; units frequently sit for 40 to 90+ days, creating severe localized cash flow leakage that neutralizes the high nominal top-line pricing.

6. B³ SCORING SYSTEM (0–100)

• Liquidity Score: 15

  • Speed: Failing. Normalized DOM routinely breaches 144 to 330+ days across all layouts.

  • Consistency: Low. Extreme friction and multi-year inventory clearance issues.

• Rent Capture Score: 65

  • Efficiency: Strong nominal yields ($64–$86/SF).

  • Absorption: Volatile. High baseline rates are heavily compromised by 60 to 90-day rental DOM outliers.

• Appreciation Score: 10

  • Durability: Failing. Widespread equity loss on recorded post-sponsor trades and severe baseline deterioration.

7. COMPOSITE SCORE & CLASSIFICATION

Composite Score = (15 × 0.35) + (65 × 0.30) + (10 × 0.35) = 28.25. Category Assignment: Yield-Oriented / Price Discovery. The asset completely fails defensive or appreciation criteria due to catastrophic illiquidity and structural baseline destruction, functioning purely as a nominal rental vehicle for those who can tolerate the vacancy drag.

8. TRANSACTION EXAMPLES (REQUIRED)

Resale Depreciation & Structural Baseline Shifts: (Note: Because the building is new and heavily illiquid, only one true resale exists. The following pairs compare the sole resale and original sponsor clearing prices against mature trailing clears within equivalent lines to map the capital decay).

1. True Resale Depreciation: Unit PH102 (2BR). Jan 2022 Buy ($1,739,970 at $1,429/SF) → Jan 2026 Sell ($1,700,000 at $1,396/SF with 94 DOM). Held 4.0 years. -2.3% change. Driver: Market regime timing.

2. 2BR Line Normalization (Deep Friction): Unit 1004 Sponsor Trade (Apr 2022 at $1,308/SF) vs Unit 501 Clear (Dec 2025 at $1,148/SF with 920 DOM). -12% baseline shift. Driver: Sponsor price normalization + Liquidity shift (DOM change).

3. 1BR Line Normalization: Unit 604 Sponsor Trade (Aug 2022 at $1,290/SF) vs Unit 709 Clear (Mar 2025 at $1,184/SF with 1,049 DOM). -8% baseline shift. Driver: Sponsor price normalization + Liquidity shift (DOM change).

4. 2BR Line Normalization: Unit 905 Sponsor Trade (Jan 2022 at $1,429/SF) vs Unit 708 Clear (Jan 2026 at $1,168/SF). -18% baseline shift. Driver: Sponsor price normalization.

9. RISKS & RED FLAGS

• Catastrophic Capital Destruction: Buyers who funded the 2021–2022 launch at $1,300–$1,450/SF are trapped in a depreciating asset, actively defying the NYXRCSA macro growth index which sits at record highs.

• Massive Illiquidity Across All Units: The building's inventory routinely sits for agonizing intervals (144 days for 1BRs, 332 days for 2BRs). Years of holding costs neutralize any theoretical capital efficiency.

• Avoid: Do not buy any unit in this building anticipating a liquid exit or capital preservation. The friction costs of a 150 to 900+ day DOM and aggressive structural baseline resets guarantee wealth destruction on short-to-medium holds.

10. EXECUTIVE SUMMARY

11 Hancock Place is a newly developed, Yield-Oriented asset currently trapped in an agonizing and destructive price-normalization phase. Early buyers who funded the 2021–2022 closings at heavy premiums ($1,300–$1,480/SF) have watched resale and trailing baseline values structurally decay down to a $1,140–$1,250/SF plateau. More critically, secondary market liquidity is deeply impaired; 1BR units require roughly 144 days to clear, while 2BR units endure catastrophic 332-day market intervals before finding capitulation bids. Completely decoupled from the all-time highs of the broader NYXRCSA benchmark, the building functions solely as an income vehicle, successfully capturing top-tier nominal rental rates ($64-$86/SF) for investors willing to absorb substantial upfront vacancy and exit illiquidity.

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