Memphis Downtown (140 Charles Street)
1. BUILDING OVERVIEW (ANALYST FRAMING)
Type: Post-war Resale Condo (Built 1985)
Scale: 72 Units, 22 Floors
Classification: Yield-Oriented
Justification: Post-sponsor data reveals a classic "Cash Cow" profile. While the building is located in the prime West Village, its appreciation mechanism is broken compared to the NYXRCSA benchmark. The building statistically underperforms the West Village sub-neighborhood by 11.9%. Crucially, units purchased during the 2015–2016 market peak (e.g., Unit 14A) have traded at nominal losses in 2024, despite the NYXRCSA index hitting all-time highs of ~330 in late 2025. However, Rent Capture is elite, with recent leases achieving $120–$134/SF and clearing rapidly.
2. UNIT MIX & COMPOSITION
The unit mix is transaction-weighted based on recorded history.
Studios: Minority of activity (Lines 14E, 17E).
1 Beds: ~55% of activity (Lines C, D, E). The dominant liquid inventory.
2 Beds: ~35% of activity (Lines A, E-combos).
3+ Beds: <10% (Rare combinations like 2CT).
Analysis: The dominance of 1-bedroom units creates a high-velocity turnover environment suitable for investors. However, the 2-bedroom "A" line shows significantly higher volatility and longer Days On Market (DOM) compared to the smaller units, indicating a Liquidity Shift as price points rise.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
A. Liquidity (Post-Sponsor)
Fastest: Unit 22D Rental (8 Days), Unit 11C Sale (26 Days), Unit 6C Sale (15 Days).
Slowest: Unit 3A (190 Days), Unit 9A (185 Days), Unit 14A (59 Days).
Observation: There is a stark divide. 1-bedroom units often clear in <45 days. 2-bedroom units (A-line) frequently suffer from Liquidity Shift, sitting for 3–6 months to find a buyer.
B. Price Strength
Baseline PPSF: $1,800 – $2,100 PPSF.
Ceiling: The building struggles to sustain sales above $2,300 PPSF. Unit 14A set a high water mark of $2,546 PPSF in 2016, but resold for only $2,391 PPSF in 2024.
Discount: The building trades at a discount to neighboring "Blue Chip" West Village condos like 173 Perry ($2,671 PPSF) or 400 West 12th ($3,395 PPSF).
C. Appreciation
Mean-Reverters: Units bought in 2015–2016 are mean-reverting.
Unit 14A: Bought 2016 ($1.795M) $\to$ Sold 2024 ($1.55M). Real and Nominal Loss.
Lagging Compounders: Long-term holds (2013 entries) show positive returns but lag the NYXRCSA benchmark beta.
Unit 7A: Bought 2013 ($2.1M) $\to$ Sold 2025 ($2.625M). +25% over 12 years (~1.9% CAGR). Compare to NYXRCSA which grew from ~220 to ~330 (+50%) in the same period.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
2014-2016 (Peak Volume): Aggressive pricing. Sales regularly hit $2,200–$2,500 PPSF (Unit 14A, 6A).
2019-2021 (Correction): Prices dipped significantly. Unit 14A sold for $1.515M ($2,337 PPSF) in 2021.
2024-2025 (Stagnation/Recovery): Prices have recovered to ~$2,300 PPSF (Unit 7A, 2E), but have barely eclipsed the 2016 highs.
Conclude: Cyclical / Flat. The building acts as a range-bound asset, failing to capture the post-pandemic breakout seen in the broader NYXRCSA index.
5. RENT CAPTURE ANALYSIS
A. Rent Capture by Line Rents are the building's strongest metric, showing efficiency and elite value per foot.
Unit 22D (1 Bed): Leased Aug 2025: $8,000/mo.
Rent PPSF: $134/SF.
DOM: 8 Days.
Unit 5D (1 Bed): Leased Oct 2024: $7,200/mo.
Rent PPSF: $121/SF.
Unit 9A (2 Bed): Leased Apr 2025: $12,500/mo.
Rent PPSF: $134/SF.
B. Rent Appreciation
Unit 6E:
Jan 2022: $4,895 $\to$ Sep 2024: $5,950.
Growth: +21.5% in 2.5 years.
Unit 2E:
Jan 2020: $11,000 $\to$ Aug 2024: $14,000.
Growth: +27% over 4 years.
Conclusion: Unlike sales prices (which are flat), rental income is Compounding aggressively.
6. B³ SCORING SYSTEM (0–100)
A. Liquidity Score: 72/100
Speed: High for 1-beds (Median ~48 days).
Consistency: Mixed. 2-bed units (Lines A/E) drag the score down with 100+ day DOMs.
B. Rent Capture Score: 92/100
Efficiency: Elite. Consistently achieving >$120 PPSF.
Absorption: Fast. Most units rent in <30 days.
C. Appreciation Score: 40/100
Magnitude: Poor. Multiple resales show losses or <2% CAGR over 8-10 year holds.
Durability: Weak. Prices have not decisively broken 2016 ceilings despite 2025 market highs.
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score: $(72 \times 0.35) + (92 \times 0.30) + (40 \times 0.35) = 25.2 + 27.6 + 14.0 =$ 66.8
Category: Yield-Oriented (Although the score crosses the 65 threshold for Hybrid, the Appreciation Score of 40 represents a structural failure to compound equity. The asset is carried entirely by its Rent Capture score, dictating a Yield classification.)
8. TRANSACTION EXAMPLES
Resale Depreciation / Flat (The "Value Trap" Vintage)
Unit 14A (1 Bed):
Bought Dec 2016: $1,650,000 ($2,546 PPSF)
Sold Jun 2024: $1,550,000 ($2,391 PPSF)
Change: -6.0% (Nominal Loss over 7.5 years).
Driver: Market regime timing (Bought at 2016 peak).
Unit 4A (2 Bed):
Bought Mar 2022: $2,100,000
Sold Sep 2024: $2,125,000
Change: +1.2% (Real Loss after costs).
Driver: Liquidity shift (Took 190 days to sell in 2024).
Unit 8A (2 Bed):
Bought Jun 2013: $2,200,000
Sold Jun 2023: $2,375,000
Change: +7.9% over 10 years (<1% CAGR).
Driver: Line-level premium persistence (Inability to hold value).
Unit 14A (1 Bed) - Earlier Flip:
Bought Apr 2021: $1,515,000
Sold Jun 2024: $1,550,000
Change: +2.3% (Flat).
Driver: Market regime timing.
Resale Appreciation (Long Term Hold Only)
Unit 6C (1 Bed):
Bought Jun 2013: $1,200,000
Sold Nov 2025: $1,600,000
Change: +33.3% (~2.4% CAGR).
Driver: Market regime timing (12-year hold).
Unit 7A (2 Bed):
Bought Jul 2013: $2,100,000
Sold Sep 2025: $2,625,000
Change: +25% (~1.9% CAGR).
Driver: Market regime timing.
Unit 9A (2 Bed):
Bought Oct 2009: $1,400,000
Sold Mar 2018: $2,230,000
Change: +59%.
Driver: Market regime timing (Caught the 2013-2015 boom).
Unit 11C (1 Bed):
Bought (Inferred ~2011/2012 basis ~$1.1M based on peers)
Sold Jan 2019: $1,485,000
Change: Positive.
Driver: Unit size/mix (Liquid 1-bed).
9. RISKS & RED FLAGS
Appreciation Trap: Buyers paying ~$2,300 PPSF today are paying close to the same price as 2016 buyers who just sold for a loss. The building has a demonstrated Price Ceiling.
Liquidity Duration Risk (2-Beds): 2-bedroom units (Line A) have shown a tendency to sit for 100-190 days. This is a "stale listing" risk.
Beta Underperformance: The NYXRCSA index is at 330 (Nov 2025), significantly up from 2013 levels, yet many units here show <2% annual growth.
10. EXECUTIVE SUMMARY
140 Charles Street is a Yield-Oriented asset that excels as a rental engine while failing to preserve capital value relative to the broader market. Post-2015 behavior confirms a "lost decade" for appreciation; units bought during the 2016 peak (like 14A) have sold for nominal losses in 2024, decoupling from the record-high NYXRCSA benchmark. However, the building captures elite rents ($120–$134/SF) with near-zero vacancy, making it a powerful cash-flow tool for landlords but a "value trap" for equity-focused investors.
B³ SCORECARD
Metric | Score |
Liquidity | 72 |
Rent Capture | 92 |
Appreciation | 40 |
COMPOSITE | 66.8 |
Category | Yield-Oriented |
Unit Mix (Transaction Weighted):
Studio: 8%
1 Bed: 55% (Dominant/Liquid)
2 Bed: 35% (Slower/Volatile)
3+ Bed: 2%