Oheka Castle facing Bankruptcy Auction Sale

By Mark Demetropoulos

Oheka Castle, the century-old West Hills estate built by financier Otto Kahn - who hosted grand parties in the 1920's that inspired the Great Gatsby - is now in bankruptcy and will be sold at auction on October 27th.

American novelist F. Scott Fitzgerald memorialized the lavish parties and gilded lives of north shore Long Island's "Gold Coast" during the 1920's in his classic novel "The Great Gatsby."

Otto Hermann Kahn was a German immigrant who built a fortune in banking and railroads - and then built for himself Oheka Castle from 1916 to 1919 - as the largest private home in New York State.

Kahn named the Castle as an acronym from the first two letters of his own name - “Oheka" ("O-He-Ka").

The castle was completed in 1919 and sits in West Hills on the Huntington-Oyster Bay town line - and perched just above the Cold Spring Harbor LIRR station.

Kahn passed away in 1934 and following his death, the estate changed ownership several times.

The Castle was purchased in 1984 by Long Island real estate developer Gary Melius.  Melius invested tens of millions in restoring and rehabilitating the Castle, converting it into a hotel and conference center.

Melius purchased the estate for $1.5 Million; and then spent over $40 million for its restoration.

The Castle has seen a parade of the rich and famous glide through its gilded halls: It has been used to film movies and rock videos - including Taylor Swift's recent video for her hit song “Blank Spaces” - and more notorious events, like the wedding of scandal-plagued US Congressman Anthony Weiner and Hillary-aide Huma Adedin - presided over by former US President Bill Clinton.

Melius' holding company filed for Chapter 11 bankruptcy protection last year, citing that the Castle had less than $60 in its bank account and was more than $63.5 million in debt.

Prior to Melius’s company filing bankruptcy, he was able to get approval by Huntington Town Board for the construction of 95 townhouse-condominium units on part of the 22-acre property which is on Oheka Castle’s land.

None of the townhouse-condos have yet been built, and it is not clear that the planning approval will transfer to a new owner through bankruptcy.

Oheka Castle will go on the auction block on October 27, 2026.