Pakistan finally sold a historic building in the United States capital that had been vacant since 2003 for $7.1 million.
Hafeez Khan, a Pakistani businessman, purchased the property. Since the embassy’s relocation, the Pakistan-owned building has been vacant. Its diplomatic status was likewise revoked in 2018, rendering it subject to local government taxes.
The District of Columbia authorities lowered the building’s property classification, boosting taxes on its assessed value. The building has been on the market for a few months.
The local authorities had modified the class status of the Pakistani government’s ancient and decaying buildings.
The renowned R Street building, which used to be a chancery, was auctioned off late last year, and the government received three bids. The bidding procedure, however, was later canceled for no apparent reason. The property’s highest bidder had offered $6.8 million. The building’s re-auction evaluation was set at $4.5 million.
The property status was further reduced by the local government early this year. From 2018 forward, the Pakistani government received no tax relief on that property.
The building’s property classification was further reduced in April 2023, and it is currently classified as Class 4 (Blighted property) due to its poor condition.
The building deteriorated even though then-prime minister Yousaf Raza Gillani approved the repairs through a $7 million loan in 2010.