Oheka Castle set for auction following bankruptcy filing

Oheka Castle, a historic 109,000-square-foot estate on Long Island, is scheduled for auction on October 27. The property, which was built between 1914 and 1919 by financier Otto Hermann Kahn, is considered the second-largest private residence in the United States.

The auction, managed by Adam Modlin of The Modlin Group, follows a Chapter 11 bankruptcy filing by Kahn Property Owner LLC. The entity reportedly owes approximately $78 million to investment firms, professional fees, and unsecured creditors. Current owner Gary Melius, who has held the estate since 1984 and invested $40 million in its restoration, declared bankruptcy in July 2025 to forestall foreclosure.

Oheka Castle has served various roles over the last century, including a military academy and a filming location for productions such as ‘The Great Gatsby’, ‘Citizen Kane’, and Taylor Swift’s ‘Blank Space’ music video. While the estate is a popular venue for weddings and community events, its future remains uncertain, with local discussions regarding potential development into luxury condominiums.