Oheka Castle Foreclosure Case Takes New Turn – NMP Skip to main content

Oheka Castle Foreclosure Case Takes New Turn

Phil Hall
Aug 26, 2016
The convoluted efforts to foreclosure on Long Island’s historic Oheka Castle estate became more complicated as the property’s owner sued to dismiss the action and seek $10 million in damages from the servicer handling the case

The convoluted efforts to foreclosure on Long Island’s historic Oheka Castle estate became more complicated as the property’s owner sued to dismiss the action and seek $10 million in damages from the servicer handling the case.

According to a Long Island Business News report, Miami Beach-based LNR Partners launched foreclosure proceedings in June against property owner Gary Melius, claiming that he defaulted on a pair of commercial mortgage-backed securities loans totaling nearly $30 million. But Melius, who purchased the 23-acre estate in 1984, has filed a countersuit against LNR Partners, claiming it avoided efforts to reach a loan workout agreement because it was eager to reach a development deal with Gale International and Jack Nicklaus’ golf course design firm that would involve leasing Oheka while purchasing the neighboring 168-acre Cold Spring Country Club.

“They’ve conspired to steal the property,” said Melius, who had previously attempted to buy Cold Spring Country Club in 2006. “They were in cahoots.”

Oheka Castle was built as the home of financier Otto Kahn in 1921 and is listed on the National Register of Historic Places. Melius has operated the property as a luxury hotel, conference center and special events venue and in February 2014 the location became the scene of a still-unsolved crime when Melius received a gunshot to the head from a masked assailant in the Oheka Castle parking lot. 

Published
Aug 26, 2016
loanDepot And mellohome's 'Grand Slam' Experience Builds Momentum

After recently launching Grand Slam, a new buying experience, loadDepot and its sister company, mellohome, has seen more than 1,400 accepted customer offers.

Industry News
Dec 08, 2021
SoCal VA Homes Stresses Importance Of New VA Loan Limits

SoCal VA Homes, a company that works exclusively with active military and Veteran homebuyers, expressed how important the Federal Housing Finance Agency's new conforming loan limit is to the demographic.

Military Lending
Dec 08, 2021
OpenClose Launches Mobile Assist

OpenClose, a fintech provider of mortgage software solutions for banks, credit unions, and mortgage lenders launched its native mobile app platform, Mobile Assist.

Tech
Dec 07, 2021
Deephaven Heightens Foreign National DSCR Program

Deephaven is amping up its Foreign National DSCR Program as a response to the increase in the real estate investment market.

Non-QM
Dec 07, 2021
Revolution Mortgage Opens Second Mortgage Branch In Cincinnati

Columbus, OH-based Revolution Mortgage announced the opening of its second branch in Cincinnati and 14th branch in Ohio.

Industry News
Dec 06, 2021
Nations Lending Teams Up With NBA Legend Dennis Rodman On Integrated Brand Campaign

Nations Lending, a full-service national mortgage lender, announced the launch of its first integrated brand campaign starring NBA Champion and All-Star Dennis Rodman.

Sales and Marketing
Dec 06, 2021