Oheka Castle auction set for October 27: Why the ‘Great Gatsby’-linked mansion where Taylor Swift filmed ‘Blank Space’ is going up for sale

Oheka Castle, the historic Long Island mansion known for its lavish parties during the 1920s, is heading to auction on October 27 as financial troubles put the future of the estate in focus.

Built in 1919 for financier Otto Hermann Kahn, the 127-room property in Huntington, New York, has passed through years of changing ownership, abandonment and restoration. It now operates as a hotel, restaurant and wedding venue, but the estate is being auctioned amid bankruptcy proceedings.

The property has more than $63.5 million in debt and less than $60 in its bank account, as per the New York Post. Gary Melius, who purchased Oheka Castle in 1984 and spent decades restoring it filed for Chapter 11 bankruptcy protection in July 2025.

Oheka Castle Auction Set for October 27

Concierge Auctions is handling the sale in cooperation with Adam Modlin of The Modlin Group. The auction is scheduled to conclude on October 27, 2026, and prospective bidders must provide a $750,000 deposit.

Taconic Capital, the investment firm holding the estate’s $60 million mortgage, is considered a likely buyer, the New York Post reported. The firm also owns an adjacent 13.3-acre development site.

The auction comes after years of financial difficulties surrounding the property. The sale will determine who acquires the estate as it moves through bankruptcy proceedings.

Oheka Castle Was Built for Financier Otto Hermann Kahn

Oheka Castle was built for German-American financier Otto Hermann Kahn and named using the first letters of his name. The estate became known for its lavish parties during the 1920s, when Kahn entertained guests at the mansion.

The property is often associated with the extravagant lifestyle depicted in F. Scott Fitzgerald’s The Great Gatsby. Business Insider explored that connection in its tour of the estate, where the mansion’s history as a setting for elaborate gatherings forms part of its appeal.

Kahn’s wife, Adelaide, reportedly nicknamed the home “Otto’s zoo,” reflecting its reputation as a place for entertaining guests.

Fires and Abandonment Left Oheka Castle in Disrepair

After Kahn died in 1934, the property changed hands several times, it housed Eastern Military Academy from 1948 to 1979 before eventually being abandoned.

During the 1980s, fires, vandalism and theft damaged the estate. And the property later underwent a major restoration after developer Gary Melius purchased it in 1984.

Business Insider reported that Melius spent $40 million restoring the mansion and the New York Post separately reported that he had invested $50 million in the estate over four decades.

The restoration brought Oheka Castle back into use as a hotel, restaurant and wedding venue. It also became a filming location, including for Taylor Swift’s “Blank Space” music video.

Oheka Castle’s Financial Troubles Lead to Auction

Despite its restoration, Oheka Castle has faced significant financial difficulties. Melius filed for Chapter 11 bankruptcy protection in July 2025, and the property is now headed to auction.

As per the New York Post, the estate has more than $63.5 million in debt and less than $60 in its bank account. Taconic Capital holds the property’s $60 million mortgage and is considered a likely buyer.

The auction marks a significant change for the estate, which Melius purchased and worked to restore over several decades.

Approved Plans for 95 Luxury Condos Add a Development Angle

The sale also brings attention to plans for residential development on part of the estate’s grounds.

The Town of Huntington has approved plans for 95 luxury condominiums on five acres of the property’s 23-acre grounds. According to the New York Post, the units are expected to sell for at least $1.8 million each.

Taconic Capital’s ownership of an adjacent 13.3-acre development site adds another property to the picture. However, the reports do not establish what the eventual buyer will do with the estate or the surrounding land.

Oheka Castle’s Legacy Extends Beyond the 1920s

Oheka Castle has served different purposes since Kahn built it more than a century ago. After functioning as a private estate, it housed a military academy, fell into disrepair and was later restored as a hospitality and events destination.