The receivership is the latest salvo in the three-and-a-half year foreclosure fight.
The three highest-priced home sales in Smithtown last month ranged from $670,000 to $1.1 million.
Speakers at the hearing opposed to the project far outnumbered those in favor.
The 210,000-square-foot building at 100 Motor Parkway is on 10.36 acres.
Sabre is partnering with QSR Franchise Development Group to form the new venture.
The current 37-room brick Tudor on 10 acres was originally built in 1910.
The three highest-priced home sales in East Moriches last month ranged from $400,000 to $422,000.
The 25,000-square-foot building is on 1.74 acres.
Herman sold her 29 percent interest for about $40 million.
Home-sharing hosts in Nassau and Suffolk counties accounted for about 139,200 guest arrivals.