Libbie Mugrabi's Hamptons mansion is set for a rare court-ordered auction on the steps of Southampton Town Hall next month, with bidding to commence at $11 million. The sale is the result of lawsuits stemming from a $3.5 million loan Mugrabi took out on the property and reportedly did not repay.
The 7-acre Bridgehampton compound was initially listed for $25 million in May. After failing to attract a buyer at that price, the asking price was reduced to $19 million. The property is being sold as-is, and prospective bidders are required to pay in cash with a minimum deposit of $2 million.
Mugrabi received the 10,687-square-foot estate as part of a $100 million divorce settlement five years ago from billionaire art collector David Mugrabi. Their separation was notably contentious, reportedly involving disputes over assets and even physical altercations.
The lender, affiliated with REO Assets of America, agreed to the auction route after Mugrabi protested an earlier Zoom auction where the lender was the sole bidder. The court-ordered sale aims to resolve the outstanding loan and associated penalties. Daniel Russo, a former Suffolk County assistant district attorney, has been appointed as the auction's referee to oversee the proceedings.
Public auctions for luxury properties are uncommon in the Hamptons, where sales typically occur through private, discreet channels. The auction is scheduled for August 28. As of Sunday evening, the property remained listed for sale at $19 million, a price point considered unlikely to be met given the upcoming auction at a significantly lower starting bid.