The beachfront pad where Wall Street super fraud Bernard Madoff used to kick back goes on sale this week. But at 8.7 million dollars it's no steal.

The beach house at Montauk, one of the swankiest locations on Long Island outside New York, was seized following Madoff's imprisonment and hits the market this week, US Marshals Service spokesman Roland Ubaldo told AFP.

Because the plan is to raise money for Madoff's victims, the steep price will not include a discount for the house's unsavory former owner, or the moribund real estate market, Ubaldo said.

"We have the victims in mind as we sell this. We really want, our top priority is restitution to the victims. We obviously want nothing less than what the house is worth."

The house is the first of three Madoff properties to be sold.

The others -- a Manhattan penthouse and a holiday house in Palm Beach, Florida -- will go on sale "in the near future," Ubaldo said.

The Montauk house is a modest 3,000 square feet (270 square meters). But what you pay for is the location.

"It really is an amazing location. There's a panoramic oceanfront view. It is in a great, great location," Ubaldo said.

"It's no more than 100 feet to the beach. Go out in the back yard and your feet are in the sand."

The property also comes with its own pool.

The houses are being sold by real estate companies on the regular market. Any contents and extras, from china wear to boats, will be auctioned, the marshals service said.

Madoff is serving a 150-year sentence in a North Carolina prison for a multi-billion dollar investment fraud that cheated thousands of people and institutions, including celebrities, charities and leading banks, over several decades.