Peter Madoff and the Old Westbury mansion

Peter Madoff, brother of Bernie, is trying to unload his Long Island mansion as he faces a lawsuit by the trustee overseeing the recovery of funds for victims of his brother’s Ponzi scheme. According to Newsday, the Old Westbury home that Peter owns with his wife has hit the market for $6.5 million. The five-bedroom, five-and-two-half-bathroom property, which is listed with Daniel Gale of Sotheby’s International Realty, sits on more than four acres next to a private golf club and has a pool, tennis court and elevator. The Madoffs purchased it for around $2.5 million in 1990. [more]

Sterling American Property, the real estate investment management fund controlled by Fred Wilpon and Saul Katz’s Sterling Equities, is letting go of a struggling Long Island office complex in a deed in lieu of foreclosure, according to the Wall Street Journal. The 127,000-square-foot Hauppauge property, Woodlands Office Park, had a loan balance of $12.7 million as of last summer, which was being overseen by special servicer ORIX Capital Markets. [more]

Mets principal owner Sterling Equities is considering selling part of the team to “strategic partners” due to the financial uncertainty created by the lawsuit filed against them by the trustee in the Bernie Madoff bankruptcy case, the Post reported. Fred Wilpon, the team’s CEO, and his son Jeff Wilpon, the COO, said in a statement that they have hired investment bank Allen & Co. to explore alternatives, including adding one or more strategic partners. While Sterling Equities is working to settle the suit, it wants to “address the air of uncertainty created by this lawsuit, and to provide additional assurance that the New York Mets will continue to have the necessary resources to fully compete and win,” the statement said. [more]

Real estate investor Fred Wilpon and his Sterling Equities were hit with a lawsuit today by the trustee overseeing the recovery of funds for victims of Bernie Madoff’s Ponzi scheme, according to the Wall Street Journal. The lawsuit was filed under a seal, but Sterling Equities is among those Madoff investors that trustee Irving Picard has said emerged from the scandal with net gains. In a court filing last year, Picard had said that a partnership associated with Wilpon’s New York Mets deposited a total of $523 million with Madoff and ultimately came away with around $571 million. [more]

Mark Madoff and the Nantucket house at 51 Wanoma Way

The beach house in Montauk found a buyer quickly, and for more than its list price. Now, as the investigation into the fraud run by Bernard Madoff expands to include his family members, some are wondering what will become of son Mark Madoff’s getaway on Nantucket, a well-heeled resort island off the Massachusetts coast. The five-bedroom waterfront home is not yet on the market, Nantucket brokers say, though a sale is entirely possible, owing to the increasing amount of trouble Mark seems to be in. “I wouldn’t be surprised if it were listed,” said Gary Winn, a principal with Maury People Sotheby’s International Realty, who has no connection to the Madoffs or the property. But the house, which Mark bought for $6.5 million in 2008, just months before Bernie’s $65 billion Ponzi scheme was exposed, was being used until recently. [more]