Unsurprising that a building's value goes down over time while the land on which it resides appreciates. The 97% discount is a comparison of the building price versus the building + land price, so the 97% isn't very relevant.
Still pretty surprising. Buildings often go up in value over time and it's often the building that gets more appreciation than vacant lots. NYC is a special case, however, because land is so scarce in Manhattan. It's also frequently the case in NYC that different parties own the land than the building.