Nov. 10 (Bloomberg) -- The price of Bernard Madoff’s former penthouse apartment in Manhattan was cut by $1 million to $8.9 million after almost two months on the market.

The three-bedroom apartment, at 133 East 64th St., was reduced yesterday and has been offered for sale for 59 days, according to StreetEasy.com, a property listing service. The U.S. Marshals Service, which is in charge of the property disposition, confirmed the reduction.

“Based on the current market and out of the better interests for the sale of the property, it was reduced,” said Roland Ubaldo, a deputy U.S. Marshal in New York.

The median price of Manhattan apartments slid 8.4 percent to $850,000 in the third quarter from a year earlier, New York appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said in an Oct. 2 report. Three-bedroom properties plummeted 41 percent to $2.25 million.

Serena Boardman, the broker for the penthouse with Sotheby’s International Realty in New York, didn’t immediately return a phone call for comment.

Madoff, 71, pleaded guilty in March to 11 counts of fraud and money laundering. He was sentenced to 150 years.

The Marshals Service is also selling a home seized from Madoff in Palm Beach, Florida. Madoff’s former home in Montauk, New York, near the summer resort communities of the Hamptons, sold for $9.41 million. The asking price was $8.75 million.

Steven Roth, the chairman of Vornado Realty Trust, bought that property, according to the Wall Street Journal.

To contact the reporter on this story: Oshrat Carmiel in New York at ocarmiel1@bloomberg.net.

Last Updated: November 10, 2009 15:39 EST