The office tower at 650 Fifth Avenue, built in the late 1970s by the Shah of Iran, has been the subject of seizure proceedings by federal prosecutors who contended that the ownership groups engaged in money laundering for their government and also violated economic sanctions imposed against Iran.
Earlier this month, a judge ruled in the prosecutors’ favor, in what prosecutors described as the country’s largest-ever terrorism-related forfeiture. The decision, which is likely to be appealed, has only added to the uncertain fate of the building, which is a highly coveted trophy property with notable tenants, like a Juicy Couture flagship store, offices for Starwood Hotels & Resorts Worldwide and the Doris Duke Charitable Foundation.
The government’s aim is to sell the property, which brokers said could bring at least $800 million. Proceeds from a sale would probably be used to pay some of the $6 billion in damages claimed by family members of victims of Iranian-sponsored terrorism, including victims of the 9/11 attacks.
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