Oheka Castle Sells at Auction for $72 Million After Bankruptcy

Long Island's iconic Oheka Castle — a 127-room Gilded Age mansion in Huntington Town built in 1919 by financier Otto Herman Kahn — sold at a private bankruptcy auction for $72 million. Owner Gary Melius had purchased the property 42 years ago for $1.5 million and poured tens of millions into its restoration, turning it into a luxury hotel and event venue. Mounting debt forced Melius to declare bankruptcy in 2025, leading to Tuesday's auction in Manhattan with seven unidentified bidders. The winning bid was submitted by an unidentified party, with the buyer's identity to be revealed at a federal bankruptcy court confirmation hearing on October 29. The property is expected to continue operating as a hotel and event venue, though the winning bidder retains the option to file plans for up to 95 condominium units on the grounds.