Gold Coast Property & Estate Management LLC won Oheka Castle at a $72 million auction Tuesday morning in Huntington Town, ending a foreclosure process that had stretched for a decade. The new owners are expected to keep the castle’s current operations running while moving ahead with development on parts of the property that do not affect the castle or its grounds.
Brian Gardner, attorney for the winning group, said the buyers “love the castle” and are ready to usher it to “its next chapter.” He said they are “excited for the opportunity to conserve the castle and take over its stewardship,” while also overseeing development “on portions of the property that will not interfere with the castle or its ground.”
Tuesday auction in Huntington Town
The auction was conducted by Concierge Auctions at a Manhattan hotel and drew six other entities into the bidding against Gold Coast Property & Estate Management LLC. The company is newly formed and run by Ronald Browning and Paul Alflen. Gardner said the planned development is “consistent with prior approvals,” pointing to a framework that lets the property move forward without changing how the castle itself operates.
That structure matters because the winning bidder is entitled to development rights for up to 95 condominium units on the property. The sale pairs those rights with the existing hotel, restaurant and catering operations, giving the new ownership a path to develop part of the site while keeping the castle in use.
Gary Melius and Oheka Castle
Gary Melius said the castle had been in foreclosure for a decade and that court documents show he owes about $60 million to a secured creditor and between $8 million and $10 million to unsecured creditors and for professional fees. He said the sale was sufficient to clear his debts. He also said Oheka will continue operating as usual under the new ownership and will keep hosting holiday events like the annual Easter egg hunt for neighborhood children.
Melius described the potential buyers as “very, very nice people” and told Newsday, “Nothing — no change. It will just get better,” and, “I am happy, my neighbors will be happy … and we'll all go ahead together.” The buyer’s promise to preserve operations while advancing development rights gives the property a split future: the castle stays open, and the unused portions of the site move into a separate development track.
Thursday bankruptcy hearing
The winning bid is expected to be taken up at a Thursday hearing in federal bankruptcy court. That hearing will be the point at which the auction result moves from the sale room into the court process that governs the property’s ownership transfer.
