—— Flatiron Building Auctioned for $190 Million; Miami Land Gets $1.5 Billion Bid; Deutsche Bank Shares Plunge 15%; Homeownership vs. Rent Gap Hits 17-Year High; Over Half of Swiss Oppose UBS-CS Deal; Hedge Funds Short Office Owners; Binance Outage Lasts Two Hours
1. Flatiron Building Auctioned for $190 Million
This Wednesday, New York’s iconic Flatiron Building in Manhattan was sold at auction for $190 million.
During a 45-minute auction, numerous real estate giants bid fiercely until Jacob Garlick emerged victorious.
Garlick stated that he had dreamed of acquiring the Flatiron Building since the age of 14 and would dedicate his life to preserving and continuing its legacy.
Douglas Elliman broker Tom Brady said that while the final sale price was reasonable, it still exceeded expectations. The buyer must be thrilled to own one of the most photographed buildings in the world.
Previously, the Flatiron Building was owned by a consortium of real estate firms, but disagreements among shareholders over renovation and leasing led the court to order a sale.
The previous owner argued the building had high vacancy rates and would require $100 million to renovate, making it unworthy of a $190 million price tag.
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2. Miami Land Gets $1.5 Billion Bid
Real estate brokerage Avison Young revealed that a 15.5-acre undeveloped plot along the Miami River has attracted five bids exceeding $1 billion, with the highest approaching $1.5 billion.
Michael Fay, a broker at Avison Young Miami, noted that the bidders were both domestic and international, with development plans including office towers for financial firms, luxury residences, and entertainment venues. He said the land could set a national sales record if sold at the ideal price.
Seller Genting Bhd, a Malaysian resort and casino giant, began marketing the land late last year.
Genting aims to use the proceeds to invest in expanding its existing resorts, including the Resorts World complex in Queens, New York. It is also one of three companies bidding for a casino license in New York State.
Genting acquired the land for $236 million in 2011 but failed to obtain a casino license in Florida.
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3. Deutsche Bank Shares Plunge 15%
Today, Deutsche Bank shares plunged 15%—its steepest drop in nearly three years—before rebounding to previous levels.
Last Friday, the bank announced a bond buyback, typically a sign of strong capital health. However, the sharp stock decline still puzzled analysts.
Andrew Coombs, an analyst at Citigroup, said the market was behaving irrationally and that Deutsche Bank’s media presence had shaken depositors’ confidence, regardless of the actual news.
After the plunge, German Chancellor Olaf Scholz publicly declared support for Deutsche Bank.
Chancellor Scholz emphasized that after restructuring, Deutsche Bank is now a highly profitable institution.
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4. Homeownership vs. Rent Gap Hits 17-Year High
An analysis by the National Multifamily Housing Council, which represents rental property owners, shows that with current mortgage rates, monthly home loan payments with a 10% down payment on a 30-year loan now exceed average rents by $1,176— the highest “buying premium” since 2006.
Over the past three years, the cost of buying and financing a home has surged 71%, or 20% annually—far above the 6.3% increase in rental costs. As a result, the cost gap between buying and renting has widened.
In today’s environment, homeownership has become less affordable, leading more people to opt for renting.
With mortgage costs so high, renting is currently the more economical choice for many.
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5. Over Half of Swiss Oppose UBS-CS Deal
According to a recent survey, 54% of Swiss citizens either oppose or strongly oppose UBS’s acquisition of rival Credit Suisse.
Thirty percent somewhat support the merger, but only 5% strongly support it.
The deal was orchestrated by the Swiss government to avert a larger financial crisis.
The survey found that 40% of respondents believe the government should have temporarily taken over Credit Suisse, while 23% felt the bank should have been allowed to go through bankruptcy under government supervision.
Although the government proposed the merger of the two banks, it has faced public backlash.
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6. Hedge Funds Short Office Owners
New data from analytics firm S3 Partners shows that hedge funds are increasingly shorting office landlords using credit derivatives and equities, primarily due to concerns that turmoil at three major U.S. regional banks may impact landlords’ access to financing.
Currently, 40% of the BlackRock iShares U.S. Real Estate ETF is sold short—the highest level since June.
According to IHS Markit, short interest in Hudson Pacific Properties has surged to a record 7.6%, doubling from a month ago.
Goldman Sachs economists note that regional banks provide around 80% of commercial real estate loans. If deposit levels fall, future funding for developers and landlords could be at risk.
This year, sales of non-government-backed commercial mortgage-backed securities (CMBS) have plunged 80%.
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7. Binance Outage Lasts Two Hours After Software Glitch
Today, Binance, the world’s largest cryptocurrency exchange, suspended trading for two hours due to a major software glitch in its core systems.
After the incident, CEO Changpeng Zhao stated the company quickly identified the root cause, which stemmed from the matching engine that processes users’ buy and sell orders.
During the outage, Binance temporarily suspended all deposits and withdrawals, calling it a routine procedure. However, a former employee claimed that blocking user withdrawals is definitely not a standard legal practice.
Since rival FTX collapsed in November, Binance has cemented its position as the world’s top crypto exchange—but any disruption could significantly impact the market.
In 2018, Binance also suffered an outage due to a spike in user volume and transaction activity.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.