Oheka Castle Sells for $72 Million at Auction, Nearly Half of Appraised Value
Gold Coast Property & Estate Management partners Ronald Browning and Paul Alflen have purchased the historic Long Island estate, which had been valued at $137 million.
Oheka Castle, a storied Long Island estate known for hosting celebrity weddings and events, has sold for $72 million at a private auction. The new owners are Ronald Browning and Paul Alflen, partners at Gold Coast Property & Estate Management.
This sale price represents a significant discount from a 2025 appraisal that valued the property at $137 million, meaning the buyers acquired it for nearly 50% less than its appraised value. The auction saw seven participants vying for ownership of America's second-largest residence.
The sale concludes a chapter for previous owner Gary Melius, a developer who filed for Chapter 11 bankruptcy last summer in an attempt to stave off creditors. Melius, who had invested $50 million over 40 years of ownership, expressed regret over the loss.
Oheka Castle's bankruptcy filing revealed a precarious financial situation, with the hotel, restaurant, and event space having minimal cash reserves and over $63.5 million in debt.
The property, originally built by banker Otto Kahn in the early 20th century, has a rich history. Its lavish style and grand grounds attracted high society figures and celebrities, including Charlie Chaplin and F. Scott Fitzgerald, who reportedly drew inspiration from the estate for "The Great Gatsby." In more recent times, the castle has been a backdrop for Taylor Swift's "Blank Space" music video and photography shoots for Jennifer Lopez and Beyoncé.
The sale included development rights for 95 luxury condos, an authorization secured by Melius. Prospective buyers at the auction included developers interested in this potential, hospitality operators looking to continue the venue's active business, and collectors seeking a unique property.
Taconic Capital, the firm holding the defaulted mortgage, had a significant advantage with a court-authorized $61 million credit. The firm had previously shown interest in acquiring the property, having purchased an adjacent 13.3-acre development site in December.
Concierge Auctions, in conjunction with the Modlin Group, managed the auction at Manhattan's Dominick Hotel. Under the terms of the court-ordered sale, the new owners are obligated to honor existing wedding and event bookings through at least March 2028.
