1. BUILDING OVERVIEW (ANALYST FRAMING)
Building Type: Postwar Condo (Vintage 2009)
Scale: 103 Units / 19 Floors
Classification: Yield-Oriented
Justification: Tempo functions as a high-utility rental chassis that has failed to capture capital appreciation for long-term holders. Despite the NYXRCSA benchmark reaching record highs (Index ~330 in Nov 2025), this building’s resale values have effectively flatlined or regressed to 2012/2013 levels. Recent sales in 2025 show pricing parity with sales from 12 years prior, indicating a "lost decade" for capital growth. However, the building exhibits robust Rent Capture mechanics, with 1-bedroom and 2-bedroom units consistently commanding $80–$92/SF and absorbing quickly. The asset is defensive for income but a "value trap" for appreciation.
Sponsor Normalization Disclosure:
Transactions Reclassified: ~35 transactions from 2011–2012.
Context: The building was built in 2009. The provided dataset shows numerous "No Listing" sales or sales with erratic pricing in 2011–2012 (e.g., Units 12H, 18B, 11DE). These are treated as the tail end of sponsor absorption to establish the pricing baseline.
Impact: Post-sponsor analysis focuses on the 2013–2025 resale cycles to determine true market liquidity.
2. UNIT MIX & COMPOSITION
The inventory is weighted heavily toward 1-bedroom units, creating a specific liquidity profile geared toward investors and transient residents.
1-Bedrooms: ~72 Sales recorded (Dominant, ~60–70% of activity).
2-Bedrooms: ~45 Sales recorded (~25–30% of activity).
3-Bedrooms+: ~15–20 Sales recorded (Limited inventory).
Analysis:
Liquidity Stability: The building relies on the 1-bedroom market for velocity. When this segment slows, the building stalls.
Rent Capture: The high density of 1-bedroom units (~700 SF) maximizes Rent/SF efficiency, driving the building's strong yield performance.
Volatility: The smaller unit sizes attract transient tenants, leading to high turnover but low vacancy intervals due to strong demand.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
A. Liquidity (Speed) Liquidity is bifurcated: efficient for small units, sluggish for large ones.
1-Bedrooms: Median DOM ~30–60 Days.
Examples: Unit 8H (20 days), Unit 6F (29 days), Unit 8C (26 days).
2-Bedrooms: Median DOM ~100+ Days (Variable).
Examples: Unit 18C (284 days), Unit 16C (211 days), Unit 19A (120 days).
3-Bedrooms: Median DOM ~70–145 Days.
Examples: Unit 19B (145 days), Unit 14C (71 days).
B. Price Strength & Dispersion
Building Median PPSF: ~$1,333.
Line Dispersion:
1-Beds: Trade tightly near $1,350–$1,450 PPSF (e.g., Unit 7H at $1,449 PPSF).
Larger Units: Can command premiums up to $1,800 PPSF (e.g., Unit 14C at $1,889 PPSF), but often sit longer to achieve it.
Discount: 2025 sales are clearing near $1,365 PPSF (Unit 8C), showing compression.
C. Appreciation Negative to Flat. Long-term holders (10+ years) are seeing zero nominal gains or significant real losses.
Trend: Resale prices in 2025 are strikingly similar to prices paid in 2013–2014, failing to track the NYXRCSA inflation.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
Phase 1 (Stabilization): 2011–2012. Pricing established ~$1,100–$1,300 PPSF.
Phase 2 (Peak): 2014–2015. Pricing spiked to $1,700–$2,000 PPSF (e.g., Unit 6A sold for $2.05M).
Phase 3 (Correction): 2016–2020. Slow decline.
Phase 4 (Current Stagnation): 2021–2025. Pricing has reverted to the $1,350–$1,500 band. The building has surrendered all gains from the 2015 peak.
Conclusion: Cyclical / Mean-Reverting. The building is currently trading at a discount relative to its own history and the broader market.
5. RENT CAPTURE ANALYSIS
A. Rent Capture by Unit Type Rental performance is the building's redeeming quality. It captures high yields with minimal leakage.
1-Bedrooms:
Rent: ~$4,900–$5,500/mo.
Rent/SF: $85–$92/SF.
DOM: Fast (13–30 days typical).
2-Bedrooms:
Rent: ~$8,200–$9,500/mo.
Rent/SF: $80–$86/SF.
DOM: Fast (14–25 days typical).
3-Bedrooms:
Rent: ~$10,000–$13,500/mo.
Rent/SF: $90+/SF.
B. Effective Rent Calculation (Example)
Unit 11F (Oct 2024):
Rent: $4,900/mo.
DOM: 13 Days.
Effective Annual Rent = $(4,900 \times 12) \times (365 - 13) \div 365 = $56,707$.
Capture Rate: 96.4%.
6. B³ SCORING SYSTEM (0–100)
A. Liquidity Score: 60
Speed: 1-Bedrooms move well (Score ~75), but 2-Bedrooms and 3-Bedrooms suffer from significant drag (100+ days, Score ~40).
Depth: Transaction volume is adequate, but speed is inconsistent across unit types.
B. Rent Capture Score: 88
Efficiency: Rent/SF is excellent ($85–$92/SF), outperforming many peers.
Absorption: Vacancy intervals are short (often < 20 days), ensuring consistent cash flow.
C. Appreciation Score: 35
Magnitude: Failure. Multiple data points confirm 0% nominal growth over 12-year hold periods.
Durability: Poor. The building is extremely sensitive to market regime changes and has not retained value post-2015.
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score = 61
$(60 \times 0.35) + (88 \times 0.30) + (35 \times 0.35) = 21.0 + 26.4 + 12.25 = 59.65 \approx 60$
Category Assignment: Yield-Oriented
Criteria: Rent Capture is high (>75), while Appreciation is failing (<50). The asset behaves like a fixed-income vehicle.
8. TRANSACTION EXAMPLES
Resale Depreciation / Stagnation (The "Lost Decade")
Unit 19B (3-Bed):
Buy: $2,265,000 (May 2013)
Sell: $2,240,000 (Dec 2025)
Result: -1.1% Loss (Nominal) over 12.5 years.
Driver: Market Regime Timing. (2013 recovery vs 2025 stagnation).
Unit 14C (3-Bed):
Buy: $2,443,800 (Jun 2013)
Sell: $2,500,000 (Sep 2025)
Result: +2.2% Gain (Nominal) over 12 years. (CAGR ~0.18%).
Context: After transaction costs and inflation, this is a massive real loss.
Driver: Liquidity Shift.
Unit 10D (2-Bed):
Buy: $2,175,000 (Jul 2013)
Sell: $1,950,000 (Sep 2022)
Result: -10.3% Loss over 9 years.
Driver: Market Regime Timing.
Unit 6A (2-Bed):
Buy: $2,050,000 (Mar 2015)
Sell: $1,525,000 (Sep 2020)
Result: -25% Loss.
Driver: Market Regime Timing (Bought at peak, sold in dip).
Resale Appreciation (Modest/Low)
Unit 8C (1-Bed):
Buy: $870,000 (Oct 2011)
Sell: $1,043,250 (May 2025)
Result: +19.9% over 13.5 years. (CAGR ~1.3%).
Driver: Market Regime Timing (Bought near bottom).
Unit 12A (2-Bed):
Buy: $1,290,000 (Feb 2012)
Sell: $1,700,000 (Aug 2021)
Result: +31% over 9.5 years.
Driver: Market Regime Timing.
Unit 8H (1-Bed):
Buy: $955,000 (Mar 2020)
Sell: $999,000 (Jun 2015... Wait, data check: Sold Jun 2025)
Result: +4.6% over 5 years. (Flat real returns).
Driver: Market Regime Timing.
Unit 4F (1-Bed):
Buy: $865,000 (Sep 2012)
Sell: $976,000 (Jul 2021)
Result: +12.8% over 9 years.
Driver: Market Regime Timing.
9. RISKS & RED FLAGS
Capital Erosion: The data is conclusive: buying a unit in this building and holding for 10+ years has historically resulted in little to no appreciation.
2-Bedroom Liquidity Trap: While 1-bedrooms sell reasonably fast, 2-bedroom units like Unit 18C (284 days) and Unit 16C (211 days) can sit on the market for 6–9 months.
Peak Pricing Danger: Avoid paying near historic highs ($1,700+ PPSF). The building naturally reverts to the $1,350–$1,450 PPSF range.
10. EXECUTIVE SUMMARY
Tempo (300 East 23rd Street) is a Yield-Oriented asset that performs exceptionally well as a rental vehicle but poorly as a capital growth investment. Post-sponsor analysis reveals a "lost decade" for appreciation, with 2025 resale values for 2-bedroom and 3-bedroom units trading flat or below 2013 acquisition prices. Despite this, the building generates premium income, with rents consistently hitting $85–$90/SF and absorption occurring in under 30 days for smaller units. The building is best suited for income-focused investors who can acquire units near the $1,350 PPSF support level; it poses significant risk for those seeking capital gains, as it has decoupled from the broader NYXRCSA appreciation trend.
B³ SCORECARD
Building: Tempo (300 East 23rd St)
Category: Yield-Oriented
Composite Score: 60
Pillar | Score | Key Metric |
Liquidity | 60 | 1-Bed Fast / 2-Bed Slow (Drag) |
Rent Capture | 88 | Elite Rents ($85–$92/SF) |
Appreciation | 35 | Flat/Negative 12-Year Trends |
Unit Mix Summary:
1-Bed: ~70% of Sales (Liquidity Engine)
2-Bed+: ~30% of Sales (Liquidity Drag)