WASHINGTON: After months of trying, Pakistan has finally sold a historic building in the US capital – vacant since 2003 – for $7.1 million, it was revealed on Thursday.
This property has been bought by a Pakistani businessman named Hafeez Khan.
The District of Columbia government downgraded the property of the building owned by the Pakistan Embassy, which had been for sale for the past few months, along with an increase in taxes on its assessed value.
Local authorities changed the class status of the old and now dilapidated building, which is owned by the Pakistani government.
The iconic R Street building, which used to be a chancery, was put up for auction late last year, after which the government received three bids.
However, the entire bidding process was later canceled by the Pakistani authorities without giving any reason. The highest bidder offered $6.8 million for the property, which is located downtown. The building’s pre-auction appraisal on an “as is” basis was set at $4.5 million as a benchmark.
The building has been vacant for over a decade. It also had its diplomatic status revoked in 2018, making it liable to pay taxes to the local government.
Building status downgraded
Local authorities further downgraded the property’s status earlier this year, further burdening the national treasury.
The classification of real estate, according to building codes here, is as follows:
- Class 1 – improved residential real property occupied and used exclusively for non-temporary residential purposes;
- Class 2- Commercial Property;
- Class 3 – vacant property;
- Class 4 – Bad property.
Official documents from the District of Columbia show that the Pakistani government has not received any tax relief on the property since 2018.
Subsequently, in 2018 and 2019, the building was first classified as Class 2 because it was commercial and then Class 3 because it was vacant from 2020 to 2022.
In April 2023, the building’s property rating was further downgraded, and it is now rated Class 4 for its poor condition.
A local government building department designates a building as dilapidated if it is unsafe, unsanitary, or otherwise determined to endanger the health, safety, or general welfare of the community.
The building department determines this status based on the following factors:
- Is the building boarded up?
- Are doors, windows, and other weather openings tight and secure?
- Are exterior walls free of holes, graffiti and decaying material?
- Are all exposed metal and wood surfaces protected from decay by paint, or another weather coating material?
- Are all balconies, porches, signs, and similar features safe and sound?
It’s also worth noting that Class 3 is taxed at $5 per $100, and Class 4 is taxed at $10.00 per $100.
As it was not properly maintained, the building fell into disrepair, although then Prime Minister Yousaf Raza Gilani approved repairs in 2010 through a $7 million loan from the National Bank of Pakistan.
