Heat pumps have COP of 4 when reaching temperatures needed for room heating. Hot water is way hotter than that. The more the difference between outside air and heated water, the less the COP becomes. I don't expect COP of 4 at 200 fahrenheit
Losses are higher but you store more energy per L, which is often the limiting factor.
I think that what actually costs money is not the space but the tank. Higher temperatures mean not only more expensive materials and shorter lifetimes for tanks and piping but also higher conductive losses.
1. Consider PCM heat storage (still relatively new technology, but works well with heat pumps)
2. Maybe the problem shall be solved at the building level, not individual apartments.