The Rennie - 2351 Adam Clayton Powell Blvd
1. BUILDING OVERVIEW (ANALYST FRAMING)
Building Type: New Development Condo (Built 2018).
Scale: 8 Floors, 134 Units.
Primary Category: Yield-Oriented.
Justification: Post-sponsor data indicates a building trapped in a severe post-development price-discovery and normalization phase. Initial market-rate sponsor sales cleared at elevated pricing ($1,150–$1,350+/SF) between 2019 and 2021,. However, the mature resale market (2022–2026) has demonstrated massive friction, with structural depreciation pulling valuations down to an $850–$1,050/SF baseline,. This severe mean-reversion has entirely decoupled the asset from the NYXRCSA benchmark, which pushed to historic highs of 330–332 in late 2025 and early 2026. With capital preservation failing and structural secondary market illiquidity (DOM frequently 200+ days), the building functions solely as a Yield-Oriented asset via its rental capture on 1BR and 2BR layouts,.
2. UNIT MIX & COMPOSITION Based on transaction-weighted data across recorded market sales:
Studio: ~10% of sales volume.
1BR: ~51% of sales volume.
2BR: ~35% of sales volume.
3BR+: ~4% of sales volume.
Influence on Liquidity & Rent Behavior: The building is heavily anchored by 1BR units. While 1BRs form the backbone of the building's rental capture—processing tenants with moderate efficiency—they suffer catastrophic illiquidity on the sales side. The lack of deep secondary demand creates a structural drag, causing even the highly-concentrated 1BR and 2BR units to frequently sit for 200 to 700+ days when attempting to offload,.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
A. Liquidity
Fastest Resale Velocity: True resale liquidity is structurally broken across the board. The rare efficient clears (e.g., PH21 in 35 days, 307 in 50 days) represent extreme outliers heavily dependent on severe price discounting,.
Slowest Resale Velocity: Most lines sit for chronic, destructive durations. Unit 215 sat for 777 days, 404 for 708 days, 201 for 599 days, 421 for 548 days, 209 for 481 days, and PH18 for 432 days,,,.
B. Price Strength
Initial sponsor premium stacks have collapsed. 1BR and 2BR units that successfully commanded $1,200+/SF at launch have corrected to a baseline of roughly $900–$1,050/SF today,.
C. Appreciation
Lines are universally mean-reverting. The building currently exhibits negative compounding on a line-by-line basis. Value destruction is consistent across all layouts in early resale data, driven purely by the deflation of the sponsor's initial premium,,.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
2019–2020 (Sponsor Peak): High volume clearing at $1,150–$1,350/SF,,.
2021–2023 (Initial Normalization): Resales begin facing resistance, settling to $1,000–$1,100/SF alongside massive days-on-market expansions,.
2024–2026 (Drawdown / Current Baseline): A drastic reset, settling at $850–$1,050/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.
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 PH7 (1BR). Achieved $3,195/mo. DOM 4. Effective Rent = $3,195 × (365 - 4) ÷ 365 = $3,159/mo.
Example 2 (Moderate Efficiency): Unit 413 (2BR). Achieved $4,250/mo. DOM 27. Effective Rent = $4,250 × (365 - 27) ÷ 365 = $3,935/mo.
Example 3 (Severe Leakage): Unit 306 (1BR). Achieved $3,300/mo. DOM 350. Effective Rent = $3,300 × (365 - 350) ÷ 365 = $135/mo.
B. Rent Appreciation Rent per SF performs moderately well, generally yielding $50 to $60/SF,. Despite the capital destruction seen on the resale market, the building captures yield relatively efficiently on its 1BR and 2BR units, with many units securing tenants in under 45 days.
6. B³ SCORING SYSTEM (0–100)
Liquidity Score: 20
Speed: Failing. Normalized resale DOM routinely exceeds 200 to 500+ days,.
Consistency: Low. Extreme friction on the secondary market.
Rent Capture Score: 72
Efficiency: Moderate to Strong ($50–$60/SF).
Absorption: Generally good, offsetting the capital destruction seen on the sales side, despite occasional severe outliers (e.g., 350 DOM).
Appreciation Score: 15
Durability: Failing. Widespread equity loss on all recorded post-sponsor market trades compared to their initial stack pricing baselines,.
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score = (20 × 0.35) + (72 × 0.30) + (15 × 0.35) = 33.85 Category Assignment: Yield-Oriented. The asset completely fails defensive or appreciation criteria, functioning purely as a rental income vehicle at its new discounted basis.
8. TRANSACTION EXAMPLES (REQUIRED)
Resale Depreciation (Structural Baseline Shifts): (Note: No true structural appreciation examples exist in the dataset due to uniform post-sponsor price deflation. The following examples compare original sponsor clearing prices for specific layouts against mature resale attempts within identical or equivalent stacks).
2BR Line Normalization: Unit 415 Sponsor Trade (Jun 2020 at $1,087/SF) vs Unit 513 Resale (Feb 2025 at $1,000/SF). -8% baseline change. Driver: Sponsor price normalization,.
1BR Line Normalization: Unit 602 Sponsor Trade (Jul 2020 at $1,192/SF) vs Unit 614 Resale (Apr 2026 at $946/SF with 271 DOM). -20% baseline change. Driver: Sponsor price normalization + Liquidity shift (DOM change),.
1BR Line Normalization (Deep Friction): Unit 308 Sponsor Trade (Dec 2019 at $1,221/SF) vs Unit 201 Resale (Aug 2024 at $873/SF with 599 DOM). -28% baseline change. Driver: Sponsor price normalization + Liquidity shift (DOM change),.
2BR Line Normalization (Deep Friction): Unit 214 Sponsor Trade (Jan 2020 at $1,232/SF) vs Unit 404 Resale (Nov 2023 at $1,046/SF with 708 DOM). -15% baseline change. Driver: Sponsor price normalization + Liquidity shift (DOM change),.
9. RISKS & RED FLAGS
Catastrophic Resale Illiquidity: Resale units sit for massive intervals (e.g., 271, 481, 599, 708, 777 days), indicating near-total illiquidity when attempting to exit the asset,,.
Severe Sponsor Price Normalization: Early buyers who paid $1,150–$1,300+/SF have suffered immediate double-digit capital destruction upon trying to clear the secondary market,.
Decoupled from Macro Base: Fails entirely to follow the NYXRCSA benchmark's appreciation path to historic highs.
Avoid: Do not buy any unit in this building anticipating a quick exit or capital appreciation. The friction costs (time value of money via 500+ DOMs) and structural price resets will destroy equity.
10. EXECUTIVE SUMMARY
The Rennie (2351 Adam Clayton Powell Blvd) is a Yield-Oriented new development currently trapped in a punishing sponsor price normalization phase. Early market-rate buyers who funded the initial 2019–2021 closings at $1,150–$1,350/SF have seen subsequent resale values structurally decay to a new $850–$1,050/SF baseline, thoroughly decoupling from the all-time highs of the broader NYXRCSA index. More critically, secondary market liquidity is catastrophically impaired, with average resales enduring 200 to 700+ days on market before finding clearing bids. Despite these severe capital preservation failures, the building's heavily concentrated 1BR and 2BR layouts perform well as rental vehicles, capturing $50–$60/SF yields with manageable vacancy. Investors should strictly avoid this asset for defensive storage or appreciation, utilizing it exclusively to farm rental income at the newly discounted cost basis.
