Iran-Linked NYC Skyscraper Sale to Benefit Terror Victims
Why this is here: The settlement directs funds from a 36-story Manhattan office tower—generating millions for Iran—to compensate hundreds of terror victims and their families after nearly two decades of legal pursuit.
Terror victims will receive $318 million from the sale of a Manhattan skyscraper linked to the Iranian government. The settlement resolves a decades-long legal battle to compensate victims of Iran-sponsored terrorism. Families of those killed in the 2001 Sbarro restaurant bombing in Jerusalem are among those who will be compensated.
The case focused on 650 Fifth Avenue, where Iran concealed its ownership through the Alavi Foundation and Bank Melli Iran. These entities routed rental income to Tehran via shell companies, violating US sanctions. Victims secured default judgments against Iran in federal court, but Iran did not satisfy them.
Over $5 billion in judgments were involved in the litigation, including claims from victims of the September 11 attacks. The Alavi Foundation will dissolve, transferring the skyscraper to the Amir Kabir Foundation, which will be monitored by US officials and barred from government ties.