A 36-storey building located in one of the United States’ most prestigious business districts is to be seized by the government after reports indicated that it’s secretly owned by the Iranian government.
650Fifth, which is located on New York’s prestigious Fifth Avenue, sits opposite the iconic Rockefeller Center and has attracted some of the city’s biggest names, many of whom are paying top dollar for it’s A-grade office space.
Those rental bills, however, are allegedly being transferred through a network of shell corporations that are owned by representatives of the Iranian government, according to United States prosecutors.
The building, which was built in the 1970s, is owned by the Alavi Foundation and Assa Corporation, which reportedly work together with Iran’s state-owned Bank Melli to channel the building’s rental income to the regime.
An investigation into the building’s ownership has been ongoing since 2008, but a series of court cases have slowed down progress. The former president of the Alavi Foundation has found guilty of destroying evidence related to the building in 2009.
Rental income from the building, which houses some of New York’s largest local companies, has been secretly transferred into the Iranian government’s central bank, which investigators believe may be financing weapons purchases.
Prosecutors are hoping to seize the building and sell it to new investors, aiming to compensate ‘victims of Iranian-sponsored terrorism’ with the proceeds. Tenants have largely remained in the building since the investigations began in 2008.
Former tenants of the building include Piaget, the Swiss luxury jeweller and watch company. If seized, the building would be the most valuable asset ever seized by a United States government body for actions related to international terrorism.
The building has been managed by CBRE, a Los Angeles-based office management company, for several years. CBRE has not responded to requests for feedback, but the Alavi Foundation has announced that it plans to appeal the efforts to seize the building.
