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John Paulson sold Southampton home to Rachael Ray

The Old Trees estate in East Hampton, a

The Old Trees estate in East Hampton, a 10 acre compound on the market for $48 million with Harald Grant of Sotheby's International Realty. For Rich Cribs. Photo Credit: HANDOUT/handout

Billionaire hedge fund manager John Paulson, who is at the center of the current controversy over Goldman Sachs subprime mortgages, has been investing in Hamptons real estate for years.

Paulson’s most notable purchase made headlines in 2008 when he paid $41.3 million for three parcels totaling 10.44 acres on Lake Agawam in Southampton. The estate, known as Old Trees, was owned by Manhattan real estate investor Rodney Propp, who flipped the property to Paulson just days after purchasing it himself for $39.2 million.

The Old Trees estate features a 15,000-square-foot, 1911 Georgian mansion built by Goodhue Livingston. The home has 13 bedrooms and a dining room that seats 60 people. The compound also features a pool, a tennis court, a carriage house and a guesthouse.

Before settling into Old Trees, Paulson owned a home on Ox Pasture Road in Southampton that he sold last year for $9.97 million, public records show. He lost nearly $3 million on the deal, having purchased it in 2006 for $12.75 million, real estate records indicate. The 6,800-square-foot shingled mansion was built in 1994 and sits on three acres.

At one time, Paulson also owned Southampton property between the Shinnecock and Southampton golf courses. That is now owned by television cooking star Rachael Ray and her husband, John Cusimano. Land records show Paulson paid $277,000 for it in 1994, selling it in 2005 for $998,000 to a private party. Ray and Cusimano paid $2.1 million for the home in 2008, according to property records.


Sotheby's International Realty photo

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