• Lisa Simpson
• Aug 28,2009
• In: Finance

Madoff’s Luxury Mansions Poised to Hit the Market

The houses that Madoff once owned – the luxury mansions are poised to hit the market. It is anybody’s guess what the selling price would be. Modoff’s real estate to the tune of $22 million is ready to be sold. Those who had been victimized and cheated by Madoff are expecting to rake in generous amounts by sharing the sale proceeds. But the question remains about how much these properties will fetch in the market. The penthouse in Manhattan has been evaluated by the FBI to be around $7.5 billion as per the court filings. But Jonathan Miller of Miller Samuel is not quite so sure. He said, “The press coverage has been calling it a $7 million Park Avenue duplex. But from what I’ve seen so far, I’d call it a fairly modest place.” One of the negative points is that it is not located on Park Avenue. Miller notes that the rooms are generous in size but they are not jumbo. There are other fears that the connection of the property with the name of Madoff might place a stigma on it. In the past real estate having links with criminals have faced devaluation. But there have been instances of the names of celebrities causing an increase in price. Miller added, “I’ve found that buyers in New York in this price range are blasé about celebrity connections. Many buyers at these prices are celebrities themselves.” Sometimes the link disgraces and hurts. When the condo of Marc Dreier, another disgraced financier, went up for auction it was sold for 21% less than what it had been priced at two years previously. However there were about six potential buyers scrambling for a piece of the pie. The fate of Madoff’s Montauk beach house covering 3,000 square feet could be better. It covers prime land on a bluff overlooking the beach. Today such building would not have got permission to be constructed for it being too close to the ocean. However this is its plus point in sale matters. Calculating from its tax records many think that the four bed roomed house could fetch nearly $3.3 million. FBI however calculated its worth to be a minimum $7 million. One realtor is optimistic that it may stretch beyond $10 million. In 1980 Madoff and his wife Ruth had bought it for $250,000. The fantastic Palm Beach waterfront haven with a private dock will not fetch much because of the hammering of Florida real estate during this time of the housing crisis. FBI estimates it at $7.5 million.

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