ATLANTIC BEACH, NY – One of Long Island’s longtime private oceanfront beach clubs is being offered for sale amid an ongoing Chapter 11 bankruptcy proceeding, placing a substantial stretch of beachfront property in Atlantic Beach on the market.
New York Beach Club Ltd., associated with the private club at 1751 Ocean Boulevard, filed a voluntary Chapter 11 bankruptcy petition on February 10, 2026, in the U.S. Bankruptcy Court for the Eastern District of New York in Central Islip, according to federal court records reviewed by LongIslandGuide.com.
The case, In re New York Beach Club, Ltd., Case No. 8-26-70576-las, is being heard before U.S. Bankruptcy Judge Louis A. Scarcella. Federal court records categorize the filing as an asset case and indicate assets between $500,001 and $1 million and liabilities between $10 million and $50 million.
The bankruptcy is the latest development in a financial and legal dispute surrounding the beachfront property that predates the Chapter 11 filing.
The club property is now being marketed for sale along with nearby oceanfront land at 1815 Ocean Boulevard, creating an unusual opportunity involving a sizable amount of Atlantic Ocean frontage in a densely developed portion of Nassau County.
The New York Beach Club itself occupies approximately eight acres of oceanfront property. According to the club’s website, the private facility includes a white-sand beach, heated swimming pool, children’s pool, cabanas, restaurant and bar, along with member activities and live entertainment.
The club remains in operation during the bankruptcy proceedings.
Bankruptcy Followed Foreclosure Proceedings
The financial problems surrounding the property entered the courts well before the February bankruptcy filing.
Carver Federal Savings Bank filed a commercial mortgage foreclosure action against New York Beach Club Ltd. and related defendants in Nassau County Supreme Court in March 2024. The litigation ultimately resulted in the appointment of attorney Michael Sepe as temporary receiver.
The receivership has continued to play a significant role since New York Beach Club entered bankruptcy.
Federal bankruptcy records show Sepe continuing to serve as receiver while the Chapter 11 case proceeds. On July 24, Judge Scarcella approved $71,300 in compensation to the receiver for work performed during May and June.
The court directed that $49,910 of that amount be paid from accounts maintained on behalf of New York Beach Club Ltd., with another $21,390 allocated to related debtor Ocean Blvd. LLC.
Court filings also identify 1751 Ocean LLC as assignee of Carver Federal Savings Bank, meaning the interests formerly held by the original lender have since been assigned to another entity.
The bankruptcy docket reflects continuing disagreements among the parties over the administration and future of the properties, including litigation concerning the receiver and requests by the secured creditor for additional relief from the bankruptcy court.
Real Estate Broker Brought Into Bankruptcy Case
A significant step toward a potential sale occurred in July.
On July 21, New York Beach Club Ltd. filed an application seeking bankruptcy court approval to retain Northgate Real Estate Group LLC as its real estate adviser.
Judge Scarcella scheduled an expedited hearing for July 23. Court records show that New York Beach Club owner Alexander Jacobson and Northgate president Greg Corbin were among those appearing at the hearing, along with attorneys and receiver Michael Sepe.
The application was granted.
The move formally brought a commercial real estate adviser into the Chapter 11 proceedings as the parties work toward monetizing the valuable oceanfront property.
The sale opportunity extends beyond the land occupied by the operating beach club.
A nearby parcel at 1815 Ocean Boulevard has also been marketed for sale. Public real estate listings describe the property as oceanfront land in Atlantic Beach and list it for $9,999,999.
The OneKey MLS listing identifies Jacobson Realty Ltd. as the listing brokerage and describes the site as property suitable for a potential private beach club or other development consistent with applicable zoning and government approvals.
Public listing data identifies the property as waterfront and provides approximately 33,999 square feet as the recorded lot size, although marketing language associated with the property describes a larger 2.75-acre oceanfront opportunity. The discrepancy means the precise acreage should be independently verified by a prospective purchaser.
Valuable Oceanfront Property
Whatever ultimately happens to the properties, their location makes the sale noteworthy.
Atlantic Beach occupies the western end of Long Beach Barrier Island, directly south of Lawrence and only a short distance from Queens and New York City. Large undeveloped or commercially controlled oceanfront parcels are comparatively scarce along this section of Long Island’s South Shore.
The New York Beach Club has operated as a private summer destination with cabanas, pools, dining and direct access to the Atlantic Ocean.
Its current website continues to promote memberships and describes the property as eight acres of private oceanfront space. Photographs published by the club show swimming pools, cabanas, dining areas and extensive beachfront facilities.
The site’s value therefore extends beyond its existing beach club operation. Any eventual purchaser could potentially see value in continuing the existing business, redeveloping portions of the property or pursuing another use, although any significant redevelopment would depend on existing zoning and the necessary municipal approvals.
Court Case Remains Active
The sale is unfolding while the federal bankruptcy case remains active.
Chapter 11 generally allows a financially distressed business to reorganize its affairs or sell assets under bankruptcy court supervision rather than immediately liquidating under Chapter 7.
The New York Beach Club proceeding has included continued involvement by the receiver, disputes involving the secured creditor and the retention of a real estate adviser.
Federal records also show a separate Chapter 11 proceeding involving Ocean Blvd. LLC, Case No. 8-26-70577, filed on the same day as the New York Beach Club case. The bankruptcy court has identified the proceedings as related.
For members, the immediate effect is less dramatic than the court proceedings might suggest. New York Beach Club continues to advertise its private beach, pools, cabanas, restaurant and entertainment as the 2026 summer season continues.
The longer-term ownership of the property, however, is now uncertain.
A sale of the New York Beach Club would transfer control of a substantial oceanfront property that has operated for generations as part of Atlantic Beach’s longstanding private beach-club community.
Key Facts & Details
| Detail | Information |
|---|---|
| Property | New York Beach Club |
| Address | 1751 Ocean Boulevard, Atlantic Beach, NY 11509 |
| Bankruptcy | Chapter 11 |
| Filing Date | February 10, 2026 |
| Federal Case | 8-26-70576-las |
| Court | U.S. Bankruptcy Court, Eastern District of New York |
| Judge | Louis A. Scarcella |
| Reported Asset Range | $500,001-$1 million |
| Reported Liability Range | $10-$50 million |
| Receiver | Michael Sepe |
| Real Estate Adviser | Northgate Real Estate Group LLC |
| Secured Creditor | 1751 Ocean LLC, assignee of Carver Federal Savings Bank |
| Related Case | Ocean Blvd. LLC, Case No. 8-26-70577 |
| Adjacent Property | 1815 Ocean Boulevard |
| 1815 Ocean Blvd. Asking Price | $9,999,999 |
| Current Status | Beach club remains operational while bankruptcy and sale proceedings continue |
The sale process could ultimately determine the future of one of Atlantic Beach’s longstanding private beachfront properties. For now, New York Beach Club continues operating while its Chapter 11 case proceeds in federal court, leaving the eventual buyer, sale price and long-term use of the oceanfront site still to be determined.
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