The Zachary (125 East 12th Street)

1. BUILDING OVERVIEW (ANALYST FRAMING)

• Building Type: Postwar Resale Condo (Built 1988)

• Scale: 6 Floors, 44 Units

• Classification: Yield-Oriented (Secondary: Defensive)

Justification: Post-sponsor resale data characterizes The Zachary as a high-velocity, income-focused asset. The building demonstrates exceptional liquidity, with recent sales clearing in roughly 30 days and historical trades often occurring in under 20 days. However, appreciation is inconsistent; while the NYXRCSA Index reached all-time highs (~330) in late 2025, certain lines in this building (e.g., Unit 3E) have traded flat or down over 10-year holding periods. The asset behaves as a reliable cash-flow generator with high turnover speed but variable equity retention.

2. UNIT MIX & COMPOSITION

• Data Basis: Transaction-weighted inventory (N=68 sales).

Composition:

• 1-Beds (~750–1,100 SF): Heavy volume. Lines E (smaller), H, G. Approx. 40% of activity.

• 2-Beds (~1,100–1,800 SF): Core inventory. Lines A, C, D, F. Approx. 40% of activity. Note significant size variance (e.g., 2A is 1,200 SF vs 5G is 1,740 SF).

• 3-Beds/4-Beds (~2,100–2,696 SF): Large "Loft" units and Penthouses (Lines B, D, PH). Approx. 20% of activity.

Impact: The mix includes unusually large floorplans for the East Village (e.g., 2,400 SF units on lower floors). This creates a "bifurcated" market: standard 1-2 beds are highly liquid commodities, while the massive lower-floor units (e.g., 1A, 1B) trade less frequently but command high absolute rents.

3. LINE (STACK) PERFORMANCE — RESALE ONLY

Sponsor normalization: Not applicable. Building built 1988; dataset starts 2003. All data is post-sponsor.

A. Liquidity (Speed)

• Rank 1 (Fastest): Line A (1-2 Beds) & Line G. (e.g., 2G in 2 days, 4A in 17 days).

• Rank 2 (Slowest): Line D (Large 2-3 Beds). (e.g., 1D in 120 days, 5D in 129 days).

• Recent Shift (2021–2025): High Velocity.

  • Unit 4C (2025): 36 Days

  • Unit 5H (2025): 34 Days

  • Unit 4EF (2022): 17 Days

  • Unit 4G (2021): 16 Days

  • Conclusion: The building is extremely liquid. Median DOM is consistently <40 days, indicating aggressive buyer demand or accurate pricing discipline.

B. Appreciation (Durability)

• H-Line (1-Bed/Flex): Compounding.

  • Unit 4H (2007): $899k → Unit 4H (2019): $1.30M. +44%.

  • Unit 5H (2020): $1.825M → Unit 5H (2025): $2.195M. +20%.

• E-Line (1-Bed): Stagnant.

  • Unit 3E (2013): $1.175M → Unit 3E (2023): $1.150M. -2.1% Loss over 10 years.

  • Context: NYXRCSA Index rose significantly during this period.

• G-Line (2-Bed): Lagging.

  • Unit 5G (2013): $1.90M → Unit 5G (2020): $2.00M. +5% over 7 years. (Real loss after inflation).

4. BUILDING-WIDE PPSF TREND (NORMALIZED)

• Growth Phase (2010–2015): Strong recovery. PPSF moved from ~$1,000 to ~$1,700.

• Plateau (2015–2025): Mean Reversion.

  • 2015 Peak: Unit 3G @ $1,739 PPSF; PHB @ $1,902 PPSF.

  • 2020 Low: Unit 5G @ $1,149 PPSF.

  • 2025 Recovery: Unit 4C @ $1,616 PPSF; Unit 2H @ $1,620 PPSF.

• Trend: Cyclical. Current pricing ($1,600 range) has recovered to near-2015 levels but has not broken out to new highs, effectively flatlining for a decade while the broader market (NYXRCSA) hit record levels.

5. RENT CAPTURE ANALYSIS

A. Rent Capture by Line (2024–2025)

• 1-Beds/Small 2-Beds (H, A, C Lines): High Efficiency.

  • Unit 4H: Rented Feb 2025 for $6,200 ($83 PPSF). DOM: 9 Days.

  • Unit 5C: Rented Sep 2025 for $9,500 ($91 PPSF). DOM: 32 Days.

  • Unit 2A: Rented Sep 2024 for $8,500 ($85 PPSF). DOM: 10 Days.

• Large Units (E, D Lines): Volume Capture.

  • Unit 1E: Rented Aug 2024 for $14,000 ($70 PPSF). DOM: 65 Days.

  • Unit 5D: Rented Jul 2024 for $17,000 ($92 PPSF). DOM: 72 Days.

B. Yield Calculation (Proxy)

• Unit 2H (1-Bed):

  • Sale (Jun 2025): $1,450,000.

  • Rent (Unit 4H Proxy, Feb 2025): $6,200/mo ($74,400/yr).

  • Gross Yield: ~5.1%.

• Unit 5C (2-Bed):

  • Rent (Sep 2025): $9,500/mo ($114,000/yr).

  • Est Value ~$1.8M (based on building PPSF ~$1,500).

  • Gross Yield: ~6.3%.

6. B³ SCORING SYSTEM (0–100)

(Scores 0–100 based on Normalized Data)

A. Liquidity Score: 85/100

• Strength: Median resale DOM is extremely low (often <30 days).

• Strength: Recent 2025 sales maintained speed despite high rates.

B. Rent Capture Score: 80/100

• Strength: Rents consistently hit $83–$91 PPSF for standard units.

• Strength: Rapid absorption (Rentals clearing in 9–10 days for small units).

• Weakness: Large units (1E) trade at lower PPSF ($70) and slower velocity (65 days).

C. Appreciation Score: 40/100

• Penalty: Negative 10-year nominal performance for Unit 3E.

• Penalty: Flat 7-year performance for Unit 5G.

• Penalty: Failure to exceed 2015 peak pricing in 2025 trades.

7. COMPOSITE SCORE & CLASSIFICATION

Composite Score: 68 (Liquidity 85 × 0.35) + (Rent 80 × 0.30) + (Appreciation 40 × 0.35)

Classification: Yield-Oriented

• Definition: A "Fast Cash" asset. The building provides excellent liquidity and rental income (Yield), but acts as a tether on equity growth (Appreciation) relative to the broader market index.

8. TRANSACTION EXAMPLES

Resale Appreciation (Market Timing):

1. Unit 5H (3-Bed):

   • Bought Aug 2020: $1,825,000 ($1,238 PPSF)

   • Sold Feb 2025: $2,195,000 ($1,489 PPSF)

   • Result: +20% over 4.5 years.

   • Driver: Market Regime Timing (Bought during COVID dip, sold into recovery).

2. Unit 4H (1-Bed):

   • Bought Mar 2007: $899,000

   • Sold Jan 2019: $1,300,000

   • Result: +44% over 12 years.

   • Driver: Market Regime Timing.

Resale Stagnation / Depreciation:

1. Unit 3E (1-Bed):

   • Bought Dec 2013: $1,175,000

   • Sold Jun 2023: $1,150,000

   • Result: -2.1% Nominal Loss over 9.5 years.

   • Driver: Appreciation Stagnation (Missed the entire post-2013 bull run).

2. Unit 5G (2-Bed):

   • Bought Apr 2013: $1,900,000

   • Sold Oct 2020: $2,000,000

   • Result: +5.2% over 7.5 years (~0.7% CAGR).

   • Driver: Market Regime Timing / Liquidity Shift.

9. RISKS & RED FLAGS

• Red Flag: The 2015 Ceiling. Buyers paying near $1,700 PPSF are paying 2015 prices. The data shows the building has struggled to hold value above this level for a decade.

• Risk: Unit 3E Performance. A nominal loss over a 10-year hold (2013–2023) is a severe indicator of underperformance against the NYXRCSA benchmark. It suggests the "bones" of the building do not command an appreciation premium.

• Opportunity: Liquidity. If you need to park cash in an asset you can liquidate in <40 days, this building is a top-tier option.

10. EXECUTIVE SUMMARY

The Zachary (125 East 12th Street) is a Yield-Oriented asset that excels at liquidity but struggles with long-term capital appreciation. Post-sponsor analysis reveals a building where units clear the market rapidly (median DOM < 40 days) and generate robust income ($83–$91 PPSF rents, ~5-6% yields). However, equity growth has been structurally capped; specific units (e.g., 3E) sold for less in 2023 than they did in 2013, completely missing the post-2013 market rally captured by the NYXRCSA benchmark. Investors should view this as a high-velocity trading vehicle or income generator, rather than a "buy and hold" wealth compounder.

B³ SCORECARD

• Category: Yield-Oriented

• Composite Score: 68

• Liquidity: 85

• Median Resale DOM: 29 Days

• Rent Capture: 80

• Appreciation: 40

• Unit Mix Summary: Studio/1-Bed: 44% of Activity (High velocity / Median DOM 24-28 Days) 2-Bed+: 56% of Activity (Variable liquidity / High DOM risk for 3-4 beds)

DISCLOSURES & NORMALIZATION

• Sponsor Normalization:

  • The building was built in 1988. The dataset begins in 2003. No sales in the provided data were flagged as sponsor transactions or required normalization, as all activity is secondary market.

• Data Note:

  • Unit 5H (2020/2025): Used as a key example of "Market Regime" timing, showing recovery value.

  • Unit 3E (2013/2023): Used as the primary evidence for "Appreciation Stagnation."