Pakistan has successfully sold a historic building in the United States capital after months of dedicated efforts.
The vacant building, which had been unoccupied since 2003, was purchased by a Pakistani businessman named Hafeez Khan for a total of $7.1 million.
The property in question belonged to the Pakistan Embassy, but the government of the District of Columbia had downgraded its classification, resulting in increased taxes on its assessed value.
The building, situated on R Street, was previously used as a chancery but had been put up for auction late last year. Initially, the government received three bids, with the highest bid reaching $6.8 million.
However, the Pakistani authorities abruptly cancelled the bidding process without providing any explanation. The pre-auction evaluation of the building was set at $4.5 million based on its current condition.
The building’s status had significantly deteriorated over the years, and its diplomatic privileges were revoked in 2018, making it subject to local government taxes.
Earlier this year, the property was further downgraded, resulting in increased financial burdens for the Pakistani government. The District of Columbia’s official documents indicated that tax relief was not granted to the Pakistani government for the property from 2018 onwards.
In April 2023, the building’s property classification was further downgraded, designating it as Class 4 due to its dilapidated condition.
The local government’s Department of Buildings determines a building as blighted based on factors such as the presence of boarded-up areas, secure doors and windows, graffiti-free exterior walls, and adequate protection against decay. The building was found to be in a state of disrepair, prompting its classification as a blighted property.
Overall, the sale of this historic building marks a significant milestone for Pakistan, allowing them to divest a long-unoccupied property and alleviate the financial burdens associated with its maintenance and taxes.