Meadow Lane house seized by government sells for $25.9 million; highest in Hamptons this year. - 27 East

Real Estate News

Real Estate News / 1417133

Meadow Lane house seized by government sells for $25.9 million; highest in Hamptons this year.

icon 1 Photo

author on Aug 31, 2009

An oceanfront house in Southampton Village, seized by the federal government last spring after its owner was indicted for fraud, was sold recently for $25.9 million, the highest closing price for a house on the East End in nearly a year, according to an agent involved in the transaction.

The house, which sits on 2 acres off Southampton’s posh Meadow Lane, was purchased for $27 million in December 2008 by James Nicholson. Almost immediately after the purchase, Mr. Nicholson re-listed it for $34 million. In April, Mr. Nicholson was arrested on federal fraud charges of bilking investors out of $160 million by falsifying financial records of several hedge funds he operated. He was dubbed a “mini-Bernie Madoff” by multiple New York City media outlets.

The house was later seized by the federal Securities and Exchange Commission and was in receivership, making it a complicated sale process. Two unnamed buyers entered a bidding war before a sealed bid was accepted and the house sold on August 13.

Before the sale could go through, the receiver, a Manhattan attorney, had to be satisfied with the price first and then the federal government, being the official seller, had to comply with laws governing the sale of what is effectively public property.

“It was an extraordinary process,” said Jennifer McLauchlen of James R. McLauchlen Real Estate, the buyer’s broker. “It was an excruciating six weeks. It was very complicated, very harrowing and very interesting. I’m glad it worked for my customers.”

Because the house was in receivership, Ms. McLauchlen’s clients had to meet the price asked by the receiver. Once a $23.5 million bid was accepted, the SEC posted the proposed selling price in a public listing for two weeks. A second interested party made an offer and a bidding war ensued between the two prospective buyers with the final price of $25,895,000 finally coming through sealed bids.

“My customers certainly wanted this particular house,” Ms. McLauchlen said. “With the federal government involved, and the receivership, it gave anybody in the world the opportunity to bid, which is exactly what happened. This was a very different situation than I’ve ever had to deal with—probably than anybody out here has ever had to deal with.”

Sotheby’s broker John McHugh, who sold the house to Mr. Nicholson last year and held the listing for the subsequent re-sale, said the sale was highest price paid for an East End property yet in 2009.

Working with a house in receivership, he added, was a rare concern for an East End broker, he added, for now.

“I’ve never had to deal with it before, but I have a feeling there are a few more coming down the road,” he said.

You May Also Like:

Calvin Klein Sells Southampton Estate For $84 Million

It appears that Calvin Klein quietly sold his Southampton Village oceanfront estate back in March ... 5 Jun 2020 by Brendan J. OReilly

Nearly $6 Million Sale Is Record For West Hampton Dunes Oceanside Home

A newly built oceanfront home on Dune Road in the Village of West Hampton Beach ... 2 Jun 2020 by Staff Writer

Beechwood Unveils The Latch Condominiums For Preconstruction Sales

Preconstruction sales began this week for The Latch Southampton Village, a 20-unit condominium community on ... by Brendan J. OReilly

Rental Scams Prey On People Seeking Housing

In recent months, a variety of rental scams have targeted people looking for housing on the East End. While many renters were able to avoid the schemes after they wised up to what was happening, others have fallen victim. Scammers, who could be from out of state or even in another country, often use online advertisements that make it difficult for authorities to track them down. While police reports are somewhat frequent, arrests related to such scams are rare. As the public and the police catch on to the latest scams, grifters change their tactics. The best defense for renters ... by Brendan J. OReilly

Thiele Votes Against ‘Too Broad’ Eviction Legislation

New York State Assemblyman Fred W. Thiele Jr. of Sag Harbor bucked his caucus last week when he voted against legislation to prevent evictions during the COVID-19 crisis. A member of the Independence Party who caucuses with the Democrats, Mr. Thiele said in a statement Monday that the legislation, which ultimately passed the Assembly, was too broad. “As was the case with the 2019 Housing Act, this legislation fails to make a distinction between primary residences and seasonal rentals,” Mr. Thiele said. “The vagueness in these laws could lead to the possibility that a court will interpret these provisions as ... 1 Jun 2020 by Brendan J. OReilly

South Fork Landlords Concerned Eviction Moratorium Is Being Abused

Governor Andrew Cuomo’s moratorium on evictions during the COVID-19 crisis is overlapping with the first summer rental season that landlords are prohibited from collecting rent for a tenant’s entire stay upfront — though whether landlords really cannot get paid in advance is still a matter of debate. Either way, the convergence of the two issues had raised concerns among landlords and brokers alike that laws and executive orders meant to protect renters who are down on their luck can be abused by squatters who have the ability to pay but choose not to. The worry brought about by the state’s ... 26 May 2020 by Brendan J. OReilly

Dune Road Estate In Quogue Sells For Nearly $10 Million

A 2-acre oceanfront estate in the Village of Quogue recently changed hands for $9.85 million, ... by Brendan J. OReilly

Wainscott Residence With Views Of Pond And Ocean Sells For $10.5 Million

A 1.2-acre Wainscott property with a 7,300-square-foot residence that overlooks Wainscott Pond and has ocean views has sold for $10.5 million, according to The Real Estate Report Inc. Built in 1992, the residence at 60 Beach Lane has eight bedrooms and 7.5 bathrooms. The two above-grade levels have a formal dining room, a library, an open kitchen, a dining room and a den. Both the living room and den have double-height ceilings. The finished basement offers a gym, wine cellar and laundry. Also among the amenities are a heated gunite pool and spa. Michael Schultz had the listing for Corcoran. ... 25 May 2020 by Staff Writer

Berkshire Hathaway HomeServices To Open Corporate Office On South Fork

Berkshire Hathaway HomeServices is opening a corporate office in Noyac on June 1, the first ... 23 May 2020 by Staff Writer

Three-Building Modern Estate In Southampton VIllage Sells For $18 Million

A modern estate in Southampton Village that was completed last year recently sold for $18 million, just $1 million shy of its asking price, according to The Real Estate Report Inc. Three separate structures — a main house, a pool house and a guest house — on 1.9 acres total 9,100 square feet. The main house has five bedrooms and 5.5 bathrooms. A double-height living room with a fireplace, a dining area, an eat-in chef’s kitchen and a den are all light-filled through the wall of glass that overlook the backyard. On the lower level, there’s a bar/lounge area, a ... by Staff Writer
logo

Welcome to our new website!

To see what’s new, click “Start the Tour” to take a tour.

We welcome your feedback. Please click the
“contact/advertise” link in the menu bar to email us.

Start the Tour
Landscape view not supported