Oheka Castle Faces Auction Amid Financial Crisis

Oheka Castle, the opulent 127-room mansion built in 1919 for financier Otto Hermann Kahn, is scheduled for auction on October 27, 2026, amid bankruptcy proceedings. The estate, once known for its lavish 1920s parties and inspiration for "The Great Gatsby," currently operates as a hotel, restaurant, and wedding venue.

Developer Gary Melius, who purchased Oheka Castle in 1984 and spent decades restoring it, filed for Chapter 11 bankruptcy protection in July 2025. The property is burdened by more than $63.5 million in debt and has less than $60 in its bank account.

Concierge Auctions is managing the sale, with Taconic Capital, the firm holding the estate's $60 million mortgage, considered a likely buyer. This sale also brings attention to approved plans for 95 luxury condominiums on five acres of the estate's grounds.

After Kahn's death in 1934, the property experienced periods of abandonment and disrepair, including fires and vandalism, before Melius's extensive restoration efforts. Despite these efforts, the estate's financial difficulties have led to this auction, marking a new chapter for the historic Long Island landmark.