Hudson Tower (350 Albany Street)

1. BUILDING OVERVIEW (ANALYST FRAMING)

Hudson Tower (350 Albany Street) is a mature postwar resale condo built in 1986 in Battery Park City. Standing 16 floors high with 133 units, it is a full-service doorman building. Based on post-sponsor behavior, the building is classified as Hybrid. It exhibits significant transaction depth with 124 sales and 55 rentals, although it structurally underperforms the Battery Park City sub-neighborhood by 12.3%. Its profile is defined by a heavy concentration of 1-bedroom units that drive consistent but slow-clearing liquidity, and a rental market that achieves respectable efficiency but is prone to severe "income leakage" in specific lines.

2. UNIT MIX & COMPOSITION

The unit mix is transaction-weighted based on 124 recorded sales.

Liquidity stability is anchored in the 1BR segment, representing nearly half of the building's activity. Volatility is concentrated in the larger configurations (3BR+), which exhibit extreme pricing dispersion—ranging from a premium $1,704 PPSF to a discounted $851 PPSF—while often clearing faster than the standard inventory, acting as liquidity agents for rare large-format needs.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

A. Liquidity Fastest-clearing resale lines include the 'H' and 'B' stacks. Unit 5H cleared in 17 days (2024) and 11B in 28 days (2021). Slowest-clearing lines are the 'A' and 'C' stacks; unit 11A required 442 days (2025), 4A required 306 days (2020), and 5C took 275 days (2023).

B. Price Strength Structural premiums are found in the 'I' and 'C' lines. Unit 11C reached $1,136 PPSF and 4I reached $1,133 PPSF. Structural discounts are prevalent in the 'L' and 'A' lines, with unit 6L trading at $644 PPSF and 8A at $722 PPSF.

C. Appreciation The building is Compounding. Line 'C' moved from $609 PPSF (2002) to $1,029 PPSF (2023). Line 'H' moved from $684 PPSF (2013) to $967 PPSF (2024).

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

• 2002–2004 (Early Resale): Median PPSF established between $296 and $731.

• 2014–2018 (Growth Period): Pricing stepped into the $800–$1,200 band.

• 2024–2025 (Maturity): Resale values stabilized with a median of $917, with prime units reaching $1,056.

• Conclusion: Compounding. Despite neighborhood underperformance, line-level value has consistently tripled its 1999–2002 floors.

5. RENT CAPTURE ANALYSIS

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

  • High-Capture (Unit 3Q): Rent $5,000, DOM 11. Effective Rent = $4,849.

  • Mid-Capture (Unit 12F): Rent $4,495, DOM 16. Effective Rent = $4,298.

  • Leaky (Unit 12C): Rent $4,500, DOM 191. Effective Rent = $2,145.

  • Extreme Leakage (Unit 2H): Rent $2,800, DOM 492. Total Income Loss (Vacancy exceeds annual cycle).

  Rent efficiency is solid in 1BR units ($60–$76 Yearly PPSF), but the building is prone to severe income leakage in the 'C' and 'H' stacks where DOM exceeds 150 days.

6. B³ SCORING SYSTEM (0–100)

• Liquidity Score: 60 (Depth is high, but a 80-day median speed and 400+ day outliers in the 'A' line degrade the score).

• Rent Capture Score: 62 (Solid efficiency is balanced by extreme vacancy leakage in specific lines like 2H and 3B).

• Appreciation Score: 68 (Clear long-term compounding magnitude, though capped by the 12.3% sub-neighborhood underperformance).

7. COMPOSITE SCORE & CLASSIFICATION

• Composite Score: (60 × 0.35) + (62 × 0.30) + (68 × 0.35) = 63.4

• Category Label: Hybrid.

• Unit Mix Summary: ~47.6% 1BR, ~7.3% 2BR, ~1.6% 3BR, ~1.6% 4BR+.

8. TRANSACTION EXAMPLES

Resale Appreciation:

• Unit 5C (1BR): $609 PPSF (2002) → $1,029 PPSF (2023). 21 yrs, +68.9%. Drivers: (1) Market regime timing, (2) Line-level premium persistence.

• Unit 3L (1BR): $550 PPSF (2003) → $943 PPSF (2024). 21 yrs, +71.4%. Drivers: (1) Market regime timing, (3) Liquidity shift.

• Unit 5H (1BR): $684 PPSF (2013) → $967 PPSF (2024). 11 yrs, +41.3%. Drivers: (1, 2).

• Unit 12C (1BR): $1,001 PPSF (2014) → $1,292 PPSF (2016). 2 yrs, +29.1%. Drivers: (1, 3).

Resale Depreciation / Drawdown:

• Unit 4I (1BR): $1,133 PPSF (2017) → $1,020 PPSF (2025). 8 yrs, -10.0%. Drivers: (1) Market regime timing, (3) Liquidity shift.

• Unit 6F (1BR): $1,000 PPSF (2015) → $1,006 PPSF (2021). 6 yrs, Flat. Drivers: (1, 3).

• Unit 8A (1BR): $852 PPSF (Unit 4A, 2020) → $744 PPSF (2025). 5 yrs, -12.7%. Drivers: (1) Market regime timing, (4) Unit size / unit mix imbalance.

9. RISKS & RED FLAGS

• Chronic Long Resale DOM: The 'A' line is a liquidity bottleneck, with units 11A and 4A exceeding 300–440 days on market.

• Income Leakage: The 'H' and 'B' rental lines show extreme vacancy risk; unit 2H sat for 492 days, effectively erasing over a year of potential income.

• What NOT to buy: Lower-floor 1BRs in the 'A' line during peak market regimes; these units exhibit the building's highest price volatility and slowest market clearing.

10. EXECUTIVE SUMMARY

Hudson Tower is a high-depth Hybrid asset that serves as a core liquidity provider in Battery Park City, despite underperforming the sub-neighborhood by 12.3%. The building’s health is anchored by its 1-bedroom units, which capture steady rent efficiency (~$70/SF) but are prone to significant "income leakage" in specific stacks where vacancy can exceed 400 days. While the building demonstrates robust long-term compounding since 2002, investors face substantial liquidity risk in the 'A' and 'C' lines where marketing periods often exceed nine months. Opportunity lies in the fast-clearing 'H' and 'B' lines for yield, while risk is concentrated in lower-floor units prone to chronic market lag.

Disclosures:

• Sponsor Normalization: Reclassified 15 transactions from 1999–2004 as sponsor-driven baselines due to "No Listing" status or DOM ≤ 30 days within the initial 5-year window. Normalized median resale DOM increased from 77 to 80 days post-adjustment.

• Benchmark: Analysis utilizes the NYXRCSA Oct 2025 index of 331.14 for temporal context.