The federal government won a valuable prize in the war on terror Thursday — full ownership of one of Manhattan’s hottest properties: 650 Fifth Ave., where Nike just signed a 15-year lease worth an estimated $700 million.
The 36-story tower, worth an estimated $800 million, was awarded to the government after a Manhattan federal jury found that it was actually controlled by Iran in violation of US sanctions.
Prosecutors have been fighting for the tower for nine long years. In 2013, they seized control of 40 percent of the office tower after proving that partial owner Assa Corp. was actually a front for Iran’s Bank Melli.
On Thursday, a jury found that charitable group Alavi Foundation, which owned the remaining 60 percent of the tower, was managing the building on behalf of Iran.
The jury came to their verdict after less than two days of deliberation following a four-week trial.
The government plans to sell 650 Fifth and give the proceeds to victims of Iran-linked terrorism who have proven their cases in court. Those include:
— The estates of 17 of the 19 US Air Force officers and airmen killed in the June 25, 1996 terrorist bombing of the Khobar Towers
— Family members of the US service men and women killed in the 1983 bombings of a US marine barracks in Beirut, Lebanon, as well as military officials wounded in that attack
— Family members of 59 victims of the 9/11 terrorist attacks who have successfully sued Iran for its involvement in the attacks, including Fiona Havlish, whose husband, Donald was killed in the World Trade Center.
“In this trial, 650 Fifth Ave’s secret was laid bare for all to see, and today’s jury verdict affirms what we have been alleging since 2008,” Acting Manhattan US Attorney Joon Kim said of the win.
“The owners of 650 Fifth Avenue gave the Iranian government a critical foothold in the very heart of Manhattan,” he said.
In addition to 650 Fifth, the jury gave the government the OK to seize a slew of other Alavi assets, including partial ownership of properties in Houston, Queens, NY, California and Maryland, as well as between over $1 million in cash from various Alavi bank accounts.
The feds do not yet know the value of the total portfolio they just won as the real estate has yet to be assessed, a source said.
The decision is a massive blow to the Alavi foundation, which argued at trial that it used the money it obtained from 650 Fifth Ave., to pay for schools and health clinics across the country.
Of the eight properties the government alleged was controlled by Iran, the jury let Alavi retain complete control over two single family homes located in Catharpin, Virginia, worth an estimated $1.1 million, according to Zillow.
“The Alavi Foundation is disappointed by today’s verdict and by the court’s decision in the related cases and is considering its options,” lawyer John Gleeson said.