Bankruptcy leads to $72 million auction for famed Long Island mansion

How much would you pay for an iconic Gold Coast mansion? The Oheka Castle was the prize up for auction on Tuesday in Manhattan, as seven unidentified bidders tried to answer the question.

In the end, the winning bid came in at $72 million.

The community around the castle shared mixed emotions.

“People are sad to lose Gary,” local civic leader Gayle Snyder said. “He’s been a wonderful neighbor.”

Gary Melius bought the abandoned and crumbling mansion 42 years ago for $1.5 million and spent tens of millions to restore the structure first built in 1919 by financier Otto Herman Kahn.

The Oheka Castle served as the backdrop for a Taylor Swift music video, and countless movies and television shows. It’s also served as the site for numerous weddings throughout the years.

Jo Von, a New York photographer, has covered roughly 100 weddings at Oheka.

“That was his home and he enjoyed really being part of that castle,” Von told News 4 regarding the restoration of the mansion. “He was the castle.”

In 2025, millions in debt forced Melius to declare bankruptcy, which led to Tuesday’s auction.

A longtime Oheka executive took to social media with a message for the new owner.

“Oheka is not simply a property. It’s the treasure that belongs in the hearts of everyone who has ever walked through its doors.”

Snyder says she and her neighbors now oppose an approved plan to build 95 condos on the Oheka property.

That multimillion dollar project seemed a big lure for bidders vying for the castle.  

“We would love if it could be financially viable without additional development,” Snyder said.