Pakistan has sold the long-abandoned embassy building in Washington for $7.1 million, a sale confirmed by both the buyers and the embassy on Thursday.
The property had been empty since 2003 and was labelled as a “blighted property” by the local government. Its diplomatic status was revoked in 2018, transforming it into a liability for the embassy. Hafeez Khan, a Pakistani American businessman from Dallas, bought the building.
During a ceremony at a Washington hotel, Pakistan’s Ambassador, Masood Khan, acknowledged the sale, hoping it would “put an end to media speculations” regarding the property. He also stated that other embassy buildings were not on the market, although at least one remained unoccupied. Mr. Khan mentioned that significant restoration work would be needed before deciding on the future use of the vacant building.
Reacting to the sale, Mr. Hafeez stated, “When I heard about the sale, I thought a Pakistani American should purchase it because we have an emotional attachment to this property. That’s why I purchased it.” Earlier this year, the city government reclassified the property as blighted and increased its taxes.
Past Challenges and Future Considerations
Located in Washington’s diplomatic quarter, the building formerly served as a chancery. It was auctioned last year, and the government received three bids. The process was halted after seemingly accepting a bid without providing a reason.
The highest bid was $6.8 million for the property located in the city centre. The pre-auction assessment valued the building at $4.5 million.
The building had been uninhabited for over a decade and deteriorated due to neglect. In 2010, then-prime minister Yousaf Raza Gillani approved a $7 million loan from the National Bank of Pakistan for its repair and another embassy building. While some of the loan was utilized for the main building restoration, this building continued to deteriorate. The main building remains vacant despite being restored years ago at a cost exceeding a million dollars.
Real estate experts caution that the funds spent on restoration could be wasted if the building’s fate is not determined promptly.
