The Shephard (275 West 10th Street)
1. BUILDING OVERVIEW (ANALYST FRAMING)
Type: Luxury Conversion (Built 1897, Converted 2016)
Scale: 42 Units, 12 Floors
Classification: Yield-Oriented (Luxury)
Justification: Post-sponsor data reveals a "Trophy Yield" asset. While the building is aesthetically elite, resale appreciation has been structurally weak for smaller units, with multiple lines trading below their 2017–2018 sponsor basis (e.g., Units 8D, 11C) despite the NYXRCSA benchmark hitting all-time highs (~330) in 2025. Conversely, Rent Capture is formidable, consistently achieving $115–$130 PPSF with rapid absorption. The building functions as a wealth store that generates high income but struggles to compound equity for commodity units.
2. UNIT MIX & COMPOSITION
The unit mix is transaction-weighted based on recorded history.
Studios/1 Beds: ~20% of activity. (Commodity inventory).
2 Beds: ~25% of activity.
3 Beds: ~25% of activity.
4+ Beds/PH: ~30% of activity. (Dominant "Trophy" weighting).
Analysis: The building is heavily weighted toward large-format inventory (3-4 beds), which creates a Liquidity Shift. Small units trade like commodities, but the large units (e.g., PHB, 4C) dictate the building's prestige pricing.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
A. Liquidity (Post-Sponsor)
Fastest: Unit 9A Rental (3 Days), Unit 4C Sale (7 Days), Unit 11A Sale (114 Days - Slow for a small unit).
Slowest: Unit 6A (Undisclosed long hold "No Listing"), PHB (206 Days).
Observation: Resale liquidity is sluggish. Even "hot" units often require 60+ days, and trophy units (PHB) can sit for nearly 7 months to find a qualified buyer.
B. Price Strength
Baseline PPSF: $2,100 – $2,500 PPSF (Studios/Small units).
Premium Lines: Large units (Line C) command $3,300+ PPSF.
Discount: Small units (8D, 11A) trade at a discount to the building median ($2,666 PPSF).
Premium: 4-Bed units trade at a premium ($3,232 PPSF median).
C. Appreciation
Mean-Reverters: Small units are consistently mean-reverting. Buyers of Studios/1-Beds from the sponsor (2017/2018) are exiting at nominal losses in 2023.
Compounders: Select large units (Line 4C) show moderate compounding (+3.4% CAGR).
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
2016-2018 (Sponsor Peak): Aggressive pricing. Studios sold for $2,500+ PPSF; Penthouses for $5,700 PPSF.
2020-2022 (Correction/Volatility): High dispersion. PHB sold for $3,994 PPSF (huge discount from PHC's $5,784 PPSF peak). 8D sold for $2,340 PPSF.
2023-2026 (Stagnation): Small units have settled into the $2,100–$2,500 range (Unit 11C, 8D), unable to reclaim 2017 highs.
Conclusion: Flat / Deflationary (for small units). The building has not participated in the post-pandemic inflation rally seen in the NYXRCSA index.
5. RENT CAPTURE ANALYSIS
A. Rent Capture by Line Rent capture is the building's strongest B³ metric.
Unit 9A (2 Bed): Rented Oct 2023 for $17,000.
Rent PPSF: $116/SF.
DOM: 3 Days.
Unit 8B (2 Bed): Rented Aug 2023 for $25,000.
Rent PPSF: $128/SF.
Unit 11C (Studio): Rented Apr 2022 for $6,500.
Rent PPSF: $123/SF.
B. Rent Appreciation
Unit 8B:
2019 Rent: $23,500 ($120/SF).
2021 Rent: $22,500 ($115/SF) [Dip].
2023 Rent: $25,000 ($128/SF).
Growth: +6.3% over 4 years (Slow but stable).
Conclusion: Rents are stabilizing at elite levels ($120+ PPSF), driven by the building's luxury amenities and West Village location.
6. B³ SCORING SYSTEM (0–100)
A. Liquidity Score: 62/100
Speed: Slow. Median resale DOM is often >60 days. Large units drag this down significantly (206 days for PHB).
Consistency: Low. Requires specific "Trophy" buyers.
B. Rent Capture Score: 90/100
Efficiency: Elite. Consistently >$115 PPSF.
Absorption: High. Unit 9A cleared in 3 days.
C. Appreciation Score: 45/100
Magnitude: Negative for small units. Moderate for large units.
Durability: Weak. Sponsor premiums on studios have burned off completely, resulting in capital losses.
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score: $(62 \times 0.35) + (90 \times 0.30) + (45 \times 0.35) = 21.7 + 27.0 + 15.75 =$ 64.45
Category: Yield-Oriented (Score is just below the Hybrid threshold of 65. The Appreciation Score of 45 acts as the anchor, forcing a Yield classification. This is a cash-flow asset, not a growth asset for most owners.)
8. TRANSACTION EXAMPLES
Resale Depreciation (Small Unit "Value Trap")
Unit 8D (Studio):
Bought Jul 2020: $1,650,000 ($2,340 PPSF)
Sold Jan 2023: $1,550,000 ($2,198 PPSF)
Change: -6.1% (Nominal Loss).
Driver: Sponsor price normalization + Market regime timing.
Unit 11C (Studio):
Bought Mar 2018: $1,635,000 ($2,595 PPSF)
Sold Jul 2023: $1,575,000 ($2,500 PPSF)
Change: -3.7% (Nominal Loss over 5 years).
Driver: Sponsor price normalization (Initial price was too high).
Unit 11A (Studio):
Bought Feb 2018: $1,350,000 (Sponsor)
Sold Oct 2021: $1,510,000
Change: +11.8% (CAGR ~3%).
Context: Modest gain, but barely covers transaction costs.
Driver: Market regime timing.
PHB (Penthouse):
Context: Sold Jun 2020 for $19M ($3,994 PPSF).
Comparison: PHC sold Dec 2017 for $34.6M ($5,784 PPSF).
Driver: Liquidity Shift / Market regime timing (COVID impact on ultra-luxury).
Resale Appreciation (Large Unit Winners)
Unit 4C (4 Bed):
Bought Jul 2017: $10,650,000 ($2,796 PPSF)
Sold Jul 2022: $12,600,000 ($3,307 PPSF)
Change: +18.3% (~3.4% CAGR).
Driver: Unit size/mix (Large family units hold value better here).
Maisonette C (3 Bed):
Bought Dec 2018: $6,307,031
Sold Mar 2022: $6,700,000
Change: +6.2%.
Driver: Market regime timing (Exit into 2022 strength).
9. RISKS & RED FLAGS
Sponsor Premium Burn-Off: Small units (Studios/1-Beds) bought in 2017–2018 are currently trading below their original purchase price. Avoid paying >$2,500 PPSF for small units.
Liquidity Duration: Large units (PHB, 6A) show a tendency to require extended marketing periods (200+ days).
No Listing Noise: The building history is plagued with "No Listing" transactions, obscuring true market discovery. Rely only on full-market resales (like 4C or 8D) for valuation.
10. EXECUTIVE SUMMARY
The Shephard is a Yield-Oriented Luxury asset that excels at generating elite rental income ($120+/SF) but has largely failed to generate capital appreciation for its initial buyers. Post-sponsor behavior shows a bifurcation: "Commodity" units (Studios/1-Beds) have suffered nominal losses (-3% to -6%) for owners holding from 2018 to 2023, while "Trophy" units (4-Beds) have managed modest gains (+3.4% CAGR). The building is an income powerhouse but a capital preservation struggle, lagging significantly behind the NYXRCSA benchmark which is at all-time highs.
B³ SCORECARD
Metric | Score |
Liquidity | 62 |
Rent Capture | 90 |
Appreciation | 45 |
COMPOSITE | 64.45 |
Category | Yield-Oriented |
Unit Mix (Transaction Weighted):
Studio/1 Bed: 20% (Depreciating)
2 Bed: 25%
3 Bed: 25%
4+ Bed: 30% (Appreciating / Dominant)