100 Avenue A
1. BUILDING OVERVIEW (ANALYST FRAMING)
Building Type: Recent Development Condo (Built 2016)
Scale: 8 Floors, 44 Units
Classification: Yield-Oriented (Currently in Price Discovery/Correction)
Justification: Post-sponsor resale data (2019–2025) identifies 100 Avenue A as a classic case of "New Development Hangover." While the building captures strong rental income ($90+ PPSF for 1-beds), early buyers from the 2016–2017 sponsor cycle are exiting at nominal losses. Despite the NYXRCSA Index reaching all-time highs (~330) in late 2025, resale pricing at 100 Avenue A has trended downward, with units like 2B selling in 2025 for ~13% less than their 2017 acquisition price.
2. UNIT MIX & COMPOSITION
Data Basis: Transaction-weighted inventory (N=43 sales).
Composition:
1-Beds (~630–700 SF): The volume driver (approx. 60% of activity). Highly standardized investor product.
2-Beds (~980–1,035 SF): Approx. 40% of activity. Corner exposures or larger footprints.
Impact: The building is heavily weighted toward efficient, investor-grade 1-bedrooms. This mix supports high rental velocity (turnover is fast) but creates a commoditized resale environment where units compete strictly on price, leading to the observed depreciation.
3. LINE (STACK) PERFORMANCE — RESALE ONLY
Sponsor normalization applied: Excluded 2016–2017 initial closings from liquidity metrics to isolate true market friction.
A. Liquidity (Speed)
Rank 1 (Fastest): Premium Penthouses (Historical).
Rank 2 (Slowest): Standard 2-Beds.
Recent Shift: Moderate Drag.
Unit 2B (1-Bed): 69 Days (Sold Sep 2025).
Unit 7E (1-Bed): 48 Days (Sold Sep 2023).
Unit 5A (2-Bed): 87 Days (Sold Sep 2022).
Unit 3A (2-Bed): 183 Days (Sold Jun 2021).
Conclusion: Median resale DOM floats around ~60 days, which is acceptable but not "hot," especially given the price cuts required to clear inventory.
B. Appreciation (Durability)
1-Bed Lines (E/B Lines): Depreciating.
Unit 2B (2017 Sponsor): $1.15M
Unit 2B (2025 Resale): $995k
Result: -13.5% Loss over 8 years.
2-Bed Lines (A/D Lines): Depreciating.
Unit 6D (2017 Sponsor): $1.934M
Unit 6D (2019 Resale): $1.44M
Result: -25% Loss.
Unit 3A (2016 Sponsor): $1.78M
Unit 3A (2021 Resale): $1.65M
Result: -7% Loss.
4. BUILDING-WIDE PPSF TREND (NORMALIZED)
Sponsor Phase (2016–2017): Premium Pricing.
Median PPSF: ~$1,700 – $1,950 (e.g., Unit 4B @ $1,950, Unit 6C @ $1,940).
Resale Correction (2019–2025): Mean Reversion.
2019: Unit 6D @ $1,396 PPSF.
2023: Unit 7E @ $1,731 PPSF (Recovery attempt, but still below 2017 peak).
2025: Unit 2B @ $1,467 PPSF.
Trend: Structural Depreciation. The building is trading at a discount to its launch pricing. While the NYXRCSA Index rose from ~270 (2017) to ~330 (2025), this building's PPSF dropped from ~$1,800+ to ~$1,450–$1,700.
5. RENT CAPTURE ANALYSIS
A. Rent Capture by Line (2024–2025)
1-Beds (The Yield Engine):
Unit 6C: Rented Mar 2025 for $5,400 ($96 PPSF).
Unit 3E: Rented Feb 2025 for $5,200 ($89 PPSF). DOM: 17 Days.
Unit 2B: Rented Jun 2023 for $5,400 ($95 PPSF).
Yield Calculation (Unit 2B Proxy):
2025 Sale Price: $995,000.
Annual Rent (Est based on Unit 2B 2023): ~$64,800.
Gross Yield: ~6.5%. (Excellent).
2-Beds:
Unit 6A: Rented Feb 2024 for $6,500 ($78 PPSF). DOM: 15 Days.
B. Conclusion Rent Capture is the building's redeeming quality. Achieving $89–$96 PPSF is strong for the neighborhood. Investors buying at the depressed 2025 price points ($995k) can secure high yields (6.5%+), whereas original sponsors are underwater.
6. B³ SCORING SYSTEM (0–100)
(Scores 0–100 based on Normalized Data)
A. Liquidity Score: 50/100
Penalty: Median resale DOM ~60 days is average, but outliers (183 days for 3A) drag the score.
Penalty: Liquidity is achieved only through price cuts (Unit 2B sold -13% below purchase).
B. Rent Capture Score: 88/100
Strength: High PPSF ($90+ for 1-beds).
Strength: Rapid absorption (Rentals clear in 1–17 days).
Strength: Strong gross yields for current buyers.
C. Appreciation Score: 20/100
Penalty: Consistent nominal losses for 2016/2017 buyers exiting in 2021–2025.
Penalty: Severe decoupling from NYXRCSA benchmark (Index +22% vs Building -13%).
7. COMPOSITE SCORE & CLASSIFICATION
Composite Score: 50 (Liquidity 50 × 0.35) + (Rent 88 × 0.30) + (Appreciation 20 × 0.35)
Classification: Yield-Oriented
Definition: This asset is a "falling knife" for equity but a "cash cow" for income. Buyers should only enter if the purchase price supports a 6%+ cap rate, as appreciation is currently non-existent.
8. TRANSACTION EXAMPLES
Resale Depreciation (The "Leakage"):
Unit 2B (1-Bed):
Bought Apr 2017 (Sponsor): $1,150,000
Sold Sep 2025: $995,000
Result: -13.5% Loss over 8 years.
Driver: Sponsor Price Normalization (Paid premium at launch).
Unit 6D (2-Bed):
Bought Apr 2017 (Sponsor): $1,934,675
Sold May 2019: $1,440,000
Result: -25.5% Loss over 2 years.
Driver: Market Regime Timing & Sponsor Price Normalization.
Unit 3A (2-Bed):
Bought Dec 2016 (Sponsor): $1,781,937
Sold Jun 2021: $1,650,000
Result: -7.4% Loss over 4.5 years.
Driver: Sponsor Price Normalization.
Unit 7E (1-Bed):
Bought May 2017 (Sponsor): $1,303,360
Sold Sep 2023: $1,200,000
Result: -7.9% Loss over 6 years.
Driver: Liquidity Shift.
Resale Appreciation (The Exception):
Unit PHE (Penthouse):
Bought Jan 2017 (Sponsor): $1,400,093
Sold Mar 2021: $1,496,827
Result: +6.9% over 4 years.
Driver: Line-Level Premium Persistence (Penthouse uniqueness protected value).
9. RISKS & RED FLAGS
Red Flag: Negative Equity. Almost every resale transaction tracked from the 2017 sponsor vintage has resulted in a loss. The building has not yet found a stable price floor that matches the 2017 launch values.
Risk: New Development Competition. With 100 Avenue A units trading at $1,467 PPSF (2025), they are competing with newer/better inventory. The "new building smell" premium has evaporated.
Opportunity: The Yield Play. Buying Unit 2B at $995k and renting it for $5,400/mo is a solid defensive strategy. The risk is strictly in resale value; the income stream is robust.
10. EXECUTIVE SUMMARY
100 Avenue A is a Yield-Oriented condo that serves as a cautionary tale of "Sponsor Premium Evaporation." Post-sponsor analysis reveals that buyers from the 2016–2017 launch are facing realized losses of 7% to 25% upon resale in the 2021–2025 window. While the building underperforms significantly on appreciation (PPSF dropped from ~$1,800 to ~$1,460), it excels at rent capture. 1-Bedroom units rent rapidly (under 20 days) and command premiums of $90–$96 PPSF. Investors should approach this asset strictly for cash flow, targeting purchase prices below $1,500 PPSF to ensure a 6%+ cap rate, while avoiding any expectation of returning to 2017 peak pricing in the near term.
DISCLOSURES & NORMALIZATION
Sponsor Normalization:
Sales from Dec 2016 – May 2017 (e.g., Units 2A, 3A, 4A, 6D, 7E, 2B, 3B, 4B) were identified as Sponsor/Initial Offering sales based on the building vintage (2016).
These were excluded from Resale Liquidity metrics.
They were used as the baseline for Appreciation calculations to demonstrate the "Sponsor Premium" loss.
Data Note:
Unit 4E: Sold twice (Dec 2016 $1.236M, Jun 2023 $1.236M). Exactly flat nominal performance over 6.5 years = Real loss due to inflation.