The Franklin Loft

Tribeca, Manhattan · Cast-iron condominium, 1883 · $4,850,000

Recommendation

Pass at this price.

3.0% a year over 10 years (-1.0% after tax), with $12,277 a month to carry from year one. As a home: renting an equivalent home is about $15,252 a month cheaper; owning wins only if values grow faster than 3.6% a year.

Confidence: High. Base case: 6.35% rate, 25% deposit, 10-year hold.

Net yield: 2.6%
Cash on cash: -10.4%
IRR: 3.0%
IRR after tax: -1.0%
Total return: 48%
Cash in: $1.41m

The property

A full-floor loft behind a restored cast-iron facade: 13-foot ceilings, eleven arched windows facing south, and a keyed elevator opening into the living room.

Provenance

Built as a dry-goods warehouse for a textile merchant in 1883; converted to sixteen residences in 1998. Landmarked as part of the Tribeca West Historic District.

Risks we weighed

Rates a point higher, a month more vacancy and values two points lower take the ten-year IRR to -5.7%. Flood exposure is moderate.

Comparable sales, deed records · 6 daysRent comparables, 41 leases · 3 daysBuilding financials, 2025 audit · 4 monthsFlood zone, FEMA and NYC maps · 1 month

This memo is live. Its figures update as rates and comparables do. Model your own properties the same way.

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