Lawmakers in the U.S. House and Senate are looking into whether the sale of the American ambassador's residence in Herzilya to Republican super-donor Sheldon Adelson complies with regulations.
The State Department informally confirmed to Congress that Adelson is the buyer of the sprawling home in the upmarket coastal city, a congressional aide told The Associated Press on Wednesday.
4 View gallery
The U.S. Ambassador's Herzliya residence during a 4th of July celebration
(Photo: U.S. Embassy)
The U.S. Embassy in Israel announced the deal this week - a sale that is meant to cement U.S. President Donald Trump's move of the American embassy from Tel Aviv to Jerusalem.
But the embassy refused to identify the buyer or disclose the sale price of the sprawling beachfront compound in the upscale city Herzliya, just several kilometers from Tel Aviv.
The Trump administration appears to have been in a rush to sell the property ahead of the November presidential election, both as a gesture to Trump's pro-Israel evangelical Christian base, and to complicate any attempts to move the embassy back to Tel Aviv if he is not re-elected.
The Democratic presidential nominee, Joe Biden, has called the Trump administration's decision to move the embassy ''short-sighted and frivolous,'' but he has said he would not move it back to Tel Aviv if elected president in November.
The U.S. Embassy has only said the buyer submitted the ''highest and best offer.''
Under the deal, Ambassador David Friedman, a driving force in the move of the embassy, will continue living at the estate until the spring of 2021, with the U.S. government leasing the property until then.
Israeli business newspaper Globes identified the buyer as Adelson, a strong supporter of both Trump and Prime Minister Benjamin Netanyahu.
It said the price was over $80 million, making it the most expensive residential real-estate transaction in Israeli history.
Representatives for Adelson, a billionaire casino magnate, did not respond to messages seeking comment.
A congressional aide said the State Department has confirmed public reports of the sale to Adelson.
The aide said the ''biggest question'' now is how much rent will be paid by U.S. taxpayers while Friedman remains at the property. The aide spoke on condition of anonymity to discuss private information.
4 View gallery
U.S. Ambassador David Friedman appears on a Zoom call from his Herzliya residence
(Photo: Screenshot )
The House Foreign Affairs Committee has submitted several requests for information from the State Department about whether the sale followed regulations, the aide said.
Among the questions: whether a real-estate broker was used and an independent appraisal of the property was conducted. The panel also wants to know whether the agent had any political ties.
Federal regulations often provide wide discretion for such arrangements and it's unclear if the rental agreement violates any regulations, the aide said. But if the rent being charged is above or below market rate, it would raise concerns, the aide said.
Senators from the Senate Foreign Relations Committee have requested a briefing from the State Department, according to a Senate Democratic aide, who requested anonymity to discuss the situation.
The State Department has said the buyer was selected solely on the basis of having submitted the highest and best offer. The selected buyer and the unsuccessful bidders have been notified, the department said.
However, the State Department also said it is not at liberty to comment on the details related to contracts underway with private entities.
The Trump administration moved the embassy from Tel Aviv to Jerusalem in 2018, shortly after recognizing Jerusalem as Israel's capital. The move is one of several steps the administration has taken in favor of Israel, and led the Palestinians to cut off ties with the White House.
Nearly all foreign delegations have their embassies in Tel Aviv because of Jerusalem's contested status. The Palestinians seek East Jerusalem, captured by Israel from Jordan in the 1967 Six-Day War, as the capital of a future state.