The Merrion (215 West 88 Street)
1. BUILDING OVERVIEW (ANALYST FRAMING)
The Merrion (215 West 88 Street) is a mature postwar resale condo originally built in 1915 and converted to condominiums around 2007–2012. Located in the Upper West Side, this 20-floor building contains 96 units and functions as a full-service doorman asset. The building currently underperforms the Upper West Side benchmark by 4.6%. Based on post-sponsor trading patterns, it is classified as a Hybrid asset. It demonstrates a stable ability to compound capital over multi-decade horizons (Appreciation) while maintaining reliable, high-velocity rental absorption for core lines (Rent Capture). Pricing remains broadly aligned with the NYXRCSA Oct 2025 benchmark (331.14).
2. UNIT MIX & COMPOSITION
The unit mix is transaction-weighted, inferred from 103 recorded sales and 28 rentals.
Unit Type | Sale activity | % of Sales Activity | Impact on Performance |
1 Bedroom | 18 | 17.5% | Moderate liquidity; 48-day median DOM. |
2 Bedroom | 30 | 29.1% | Core segment; high volatility in DOM (31 to 160 days). |
3 Bedroom | 26 | 25.2% | Primary building engine; anchors PPSF but prone to 91–263 day friction. |
4 Bedroom+ | 7 | 6.8% | Prestige segment; defines building PPSF ceiling ($1,800+). |
Other/Unknown | 22 | 21.4% | Includes specialty and bulk transfers. |
Analysis: The building is 3-bedroom dominant, which anchors its valuation but introduces a structural unit size / unit mix imbalance. Larger units (3BR/3BA) face significantly higher absorption friction, requiring a median of 263 days to clear compared to just 36 days for prime 2-bedroom units.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
Sponsor Normalization Disclosure: Following the B³ rule, 37 transactions occurring between Dec 2007 and July 2012 (e.g., Units 10A, 5H, 9E, 7A, 2D, 2B, 5B, 10C, 8B, 4D, 6A, 11B, 5A, 2A, 3F, 2H, 8A, 7D, 9CD, 4A, 3D, 5C, 5D, 1C, 7F, 9F, 2E, 6FG, PH, 5F, 9B, 6B, 11E, 10H, 4B, 1B, 12D) are reclassified as sponsor-driven due to "No Listing" status or DOM ≤ 30 days during the building's initial conversion maturity.
Impact: Normalization adjusts the artificial "zero-day" DOM floor to a realistic resale median of 91 days.
A. Liquidity (Resale Only):
Fastest Units: The 2-bedroom / 2-bath tier (Line B/C) clears most efficiently with a median of 36 days.
Slowest Units: The 3-bedroom / 3-bath tier (Line D) is the primary bottleneck, sitting for a median of 263 days.
B. Price Strength: The building's median resale PPSF is $1,259.
Structural Premiums: The 2-bedroom / 2-bath tier ($1,563 PPSF) and 4-bedroom / 4.5-bath tier ($1,817 PPSF) command significant premiums.
Structural Discounts: The 3-bedroom / 1.5-bath tier trade at a deep discount, clearing at $912 PPSF.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
2008–2012 (Sponsor Baseline): PPSF was established between $800 and $1,200 for core residences.
2013–2018 (Expansion): Values moved decisively into the $1,500–$1,900 PPSF range.
2023–2025 (Current Regime): Prices show Cyclical behavior, stabilizing between $1,344 and $1,611 PPSF.
Conclusion: Compounding. Despite cyclical softening from 2018 peaks, the building maintains a floor significantly above its early conversion baselines.
5. RENT CAPTURE ANALYSIS
MANDATORY FORMULA: Effective Annual Rent = Achieved Rent × (365 − Rental DOM) ÷ 365.
Unit | Achieved Rent | Rental DOM | Effective Annual Rent | Rent Leakage |
11E (3BR) | $10,000 | 24 | $112,110 | $7,890 (6.6%) |
2G (3BR) | $11,200 | 29 | $125,510 | $8,890 (6.6%) |
12F (4BR) | $16,000 | 79 | $156,493 | $35,507 (18.5%) |
12F (4BR) | $13,222 | 141 | $107,733 | $50,931 (32.1%) |
Analysis: Income capture is efficient in the 3-bedroom segment (6.6% leakage). However, the building suffers from significant income leakage (18%–32%) in the 4-bedroom segment when absorption friction exceeds 75 days.
6. B³ SCORING SYSTEM (0–100)
Liquidity Score: 68/100 — Driven by a 91-day median DOM; speed is moderate but consistency is hampered by extreme 263-day friction in 3BR units.
Rent Capture Score: 72/100 — Reflects strong nominal Yearly PPSF ($60–$90) but is penalized by leakage in the 4BR segment.
Appreciation Score: 76/100 — Driven by long-term capital compounding from $900 baselines to current $1,500+ resale peaks.
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score = (68 × 0.35) + (72 × 0.30) + (76 × 0.35) = 72.0
Category: Hybrid The building qualifies as a Hybrid asset (All scores ≥ 65), providing a reliable capital store with balanced performance across speed and income efficiency.
8. TRANSACTION EXAMPLES
Resale Appreciation Examples:
Unit 10A (1BR): $1,123 PPSF (2008) → $1,344 PPSF (2025). +19.7% Total. Drivers: (1) Market regime timing, (5) Sponsor price normalization.
Unit 12E (3BR): $1,001 PPSF (2009) → $1,605 PPSF (2023). +60.3% Total. Driver: (5) Sponsor price normalization.
Unit 6C (2BR): $891 PPSF (2010) → $1,627 PPSF (2018). +82.6% Total. Driver: (1) Market regime timing.
Unit 8A (1BR): $1,077 PPSF (2010) → $1,285 PPSF (2022). +19.3% Total. Driver: (5) Sponsor price normalization.
Resale Depreciation/Stagnation Examples:
Unit 5A (1BR): $1,527 PPSF (2018) → $1,240 PPSF (2024). -18.8% Total. Driver: (1) Market regime timing.
Unit 2B (2BR): $1,401 PPSF (2016) → $1,312 PPSF (2022). -6.3% Total. Drivers: (1) Market regime timing, (3) Liquidity shift.
Unit 8E (3BR): $1,621 PPSF (2013) → $1,426 PPSF (2023). -12.0% Total. Driver: (3) Liquidity shift.
Unit 2G (3BR): $1,667 PPSF (2019) → $1,596 PPSF (2025). -4.2% Total. Driver: (3) Liquidity shift.
9. RISKS & RED FLAGS
Chronic 3BR Friction: Avoid the 3BR/3BA segment (Line D) for short-term holds; a 263-day median DOM signals extreme exit friction.
Income Leakage in 4BRs: The 4-bedroom segment is prone to absorption failures, with DOM-adjusted leakage reaching 32%.
Pricing Drawdowns: Units bought during the 2017–2019 peak (e.g., 5A, 2G) have frequently mean-reverted or traded lower in the current regime.
10. EXECUTIVE SUMMARY
The Merrion is a Hybrid prewar resale condo that behaves as a resilient capital store on the Upper West Side, compounding value at approximately 1–2% CAGR since its 2008 sponsor normalization. While the 2-bedroom engine (Line B/C) provides elite liquidity (36-day DOM), the building's larger 3-bedroom residences suffer from significant liquidity shifts, occasionally requiring nearly nine months to clear. Income capture is highly efficient for smaller configurations, but the building is susceptible to catastrophic leakage (up to 32%) in the 4-bedroom tier. Opportunity lies in acquiring prime 2-bedroom lines for consistent yield, while risk is concentrated in the 3-bedroom segment where price discovery is chronically slow.
B³ SCORECARD
Liquidity Score: 68
Rent Capture Score: 72
Appreciation Score: 76
Composite Score: 72.0
Category Label: Hybrid
Unit Mix Summary: 3BR-Dominant (25.2% of activity).
Disclosures: 37 transactions reclassified as sponsor-driven (2007–2012). NYXRCSA Oct 2025 Benchmark: 331.14.