Last month a pair of tickets owned by Bernard Madoff Investment Securities for the Mets home opener at Citi Field sold for $7,500. The tickets, which attracted 68 bids, each had a face value of just $525.
It remains to be seen, however, whether the Upper East Side co-op that Madoff lived in before he went to jail for the largest Ponzi scam in history will also command such heavy buyer interest — and such a significant price premium.
Madoff’s co-op was pegged at $7 million in the bond that was put up for his house arrest in December.
But now — in an ironic twist for the man whose financial scam may have accelerated the plunge of the real estate market — his apartment, like all properties in the city, could be worth much less than the $7 million value that’s been bandied about.
Madoff’s wife, Ruth, technically owns the duplex penthouse at 133 East 64th Street, and a buyer will likely purchase it at auction when Madoff’s assets are liquidated.
While the apartment size is not available via public records, the New York Post reported that it had four bedrooms and five bathrooms, while other media reported the upper level of the apartment has significant outdoor space.
Ronald Gold, president of Goldappraisal.com and past president of the New York City chapter of the American Society of Appraisers, guesses that Madoff’s co-op is now worth between $4.2 and $6 million, based on a host of factors.
For example, Gold said that assuming the unit is 3,500 square feet, that $7 million figure would mean it would sell for $2,000 per square foot,” which could be higher, he noted, depending on how much a purchaser prizes the apartment’s finishes and views. In addition, public records show the Madoffs paid $4,800 in monthly maintenance charges in 2003, a number that probably tops $6,000 a month these days owing to property tax increases as well as insurance and water and sewer tax increases.
“Now prices are down by 30 to 35 percent,” said Gold, “so, depending on the size of the terrace and the views, it could probably sell in the $1,200- to $1,700-a-foot range.”
Gold also said the fact that the building “isn’t on Park or Fifth Avenue” means it doesn’t carry the premium of those more prestigious addresses.
Public records show the last two sales at 133 East 64th Street were for a $5.7 million unit in October 2005 and a $5.5 million unit earlier that year.
While some brokers have said selling Madoff’s homes could be challenging because he ripped off so many charities, others who have sold units in the building — but have not been inside Madoff’s penthouse — think that it will indeed fetch its stated value. “Assuming it’s in great shape, that’s a very good building, and its penthouse would probably sell for between $7 and $8 million,” said Barbara Fox, president of Fox Residential Group.
Dennis Greenstein of law firm Seyfarth Shaw said if the unit is sold at auction, the sale would presumably be subject to the board’s consent. Still, given that proceeds of the sale might benefit Madoff’s victims, “whoever buys it knows their money is going to a good cause,” said Fox.