650 Fifth Avenue

Iranian ownership

In December 2008, the Asset Forfeiture Unit and Terrorism and National Security Unit of the United States Attorney's Office for the Southern District of New York sought to seize 40 percent ownership in the building after it charged that Bank Melli of Iran owns that percentage of the building in violation of the sanctions against Iran. The other 60 percent of the building is owned by the Alavi Foundation—the Bonyad that is successor to the Pahlavi Foundation.

Bank Melli had originally financed it with a $42 million loan in 1978.

According to the U.S. government, the Alavi Foundation transferred 35 percent interest in the building to a shell company Assa Company Limited, which had just one employee, in exchange for Bank Melli officially cancelling the loan. However, the shell company officially registered in Jersey, was reported to be owned by Bank Melli.

In 2012, the owners hired CBRE Group to overhaul the building and lease space and give the appearance that Iran no longer had ties to the building. The new group spent $11 million renovating the building lobby and elevators.

In September 2013, United States District Court for the Southern District of New York Judge Katherine B. Forrest ruled "based on the uncontroverted record evidence, Assa was (and is) a front for [Iran's first national bank] Bank Melli, and thus a front for the government of Iran" and thus Alavi should forfeit for the property. Alavi indicated it would appeal the decision. SL Green bought the retail space that year. In June 2017, acting U.S. Attorney Joon H. Kim said the United States was prepared to seize the skyscraper—worth between $500 million to $1 billion—after a jury found that the Iranian sanctions had indeed been breached. In 2019, the jury verdict to seize the property was overturned by a federal appeals court.

References

References

1. {{usurped
2. "[http://alavifoundation.org/ Home] {{Webarchive. link. (May 22, 2017 ." [[Alavi Foundation]]. Retrieved on July 5, 2016. "The Alavi Foundation 650 Fifth Avenue, Suite 2406 New York, New York 10019 ")
3. Kessler, Glenn. (December 18, 2008). "U.S. Links Iranian Bank To Fifth Avenue Building". [[The Washington Post]].
4. (17 December 2008). "UNITED STATES FILES CIVIL FORFEITURE ACTION AGAINST ASSA CORPORATION'S INTEREST IN MANHATTAN OFFICE TOWER". justice.gov.
5. (2012-10-12). "650 Fifth Avenue in NYC Unveils New Look".
6. Barbarino, Al. (2013-09-17). "Judge Orders 650 Fifth Avenue Ownership to Forfeit Assets".
7. Satow, Julie. (September 24, 2013). "Seizing Iran’s Slice of Fifth Avenue".
8. (November 13, 2013). "SL Green acquires interest in 650 Fifth Avenue".
9. Baltic, Scott. (November 12, 2013). "SL Green Acquires Interest in Manhattan’s Embattled 650 Fifth Ave.".
10. Neumeister, Larry. (June 29, 2017). "Jury finds that NYC skyscraper owner violated Iran sanctions".
11. Wang, Vivian. (June 29, 2017). "Manhattan Skyscraper Linked to Iran Can Be Seized by U.S., Jury Finds".
12. Stempel, Jonathan. (August 9, 2019). "U.S. Verdict allowing seizure of Iran-linked Manhattan skyscraper is overturned". Reuters.