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Patricia Kluge: Billionaire's Ex-Wife Faces Foreclosure

Filed under: Estates, Wine, Real Estate Developments, Wealth, Architecture & Design

Patricia Kluge photos, Patricia Kluge house photos

Patricia Kluge, the 1980s society queen and ex-wife of billionaire media mogul John Kluge, has fallen on some hard times. Kluge was famously awarded the largest divorce settlement in history (a reported $1.6 million a week) but she seems to have figured out a way to spend it – and then some.

She's allegedly in default of nearly $23 million on her gilded mansion in Virginia, which made headlines for its outlandish $100 million price tag when it first hit the market in October 2009. Sotheby's didn't get that asking price, nor the drastically reduced $24 million it was eventually priced at. Instead, on Feb. 16, the 23,538-square-foot home will be auctioned on the Albemarle County courthouse steps.

Kluge's house isn't the only possession she's losing: Her antiques and jewelry have already been auctioned through Sotheby's. Her winery was foreclosed on and its inventory also sold off at auction. On top of that, several lots in the Vineyard Estates subdivision she devised for her property were also auctioned.

The Hook reported that according to court records, Kluge borrowed a whopping $66 million for the house, winery and subdivision.

How could Kluge have blown through her fortune and now lost it all?

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Kluge Estate Winery and Vineyards Fails To Sell At Auction

by Deidre Woollard (RSS feed) —

Filed under: Wine, Wealth

Back in October I mentioned that the Kluge Estate Winery and Vineyards was going through foreclosure and was in the hands of its lenders. It looks like it will stay there for a while. The property failed to sell at auction this week with bidders unwilling to top the Farm Credit Bank's opening bid of $19 million. The auction was for a total of 907 acres of property that included 164 acres of vineyards, the winery tasting room, six houses, offices and production buildings, a barrel storage cave and a former carriage museum.The Daily Progress reports that the Kluge Estate owes an estimated $34.8 million to Farm Credit for a loan taken out in 2007.

Patricia Kluge has thrown her heart, soul and no small amount of money into her Virginia wine business. Kluge and her husband and business partner Bill Moses have Albemarle House, their 45-room English style manor, on the market for $24 million (it was listed at $100 million last year) and earlier this year they sold off the contents at Sotheby's in a two-day buying bonanza that brought in $15.2 million. A sale of her jewelry brought in around $5 million.

Kluge Estate trustee Bill Shmidheiser said the bank hopes to sell the property and that $19 million is a good deal for any buyer because Kluge and Moses spent approximately $50 million creating the winery. The estate is set up to produce about 34,000 cases of wine per year, far larger than most smaller wineries in Virginia that produce around 5,000 cases per year. Another auction is scheduled for this weekend to sell off 15,000 cases of wine from the Kluge Estate.

Gallery: Kluge Estates Vineyard

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Sotheby's First Home Auction in 20 Years

by Carrie N. Culpepper (RSS feed) —

Filed under: Estates, Auctions

On May 31 antiques lovers and voyeurs can step inside Virginia billionaire-cum-winemaker Patricia Kluge's 45-room estate in Albermarle County, Va., for a peek at what could be theirs. Kluge's grand estate, Albermarle House, is on the market and she plans to sell off its contents during a two-day auction conducted by Sotheby's on June 8 and 9. Those who buy an auction catalog are welcome to the preview the auction items on-site in May.

"Albemarle House, [Kluge's] collaboration with designer David Easton, rejuvenated high-style country living in the United States in the English tradition, which had declined since the early 20th century," says Sotheby's Worldwide head of French, Continental and English furniture, Alistair Clarke.

Sotheby's will auction Kluge's entire collection within the house, much of which came from top dealers in the U.K. and private collections around the world, including Chinese paintings and works of art, books, sporting guns, jewels, lighting and decorative objects as well as designer gowns by Christian Lacroix and Givenchy. The Kluges' gilded life will be on the auction block.

The home itself is for sale, too. Kluge hasn't had any luck selling the 300-acre estate, which she originally listed for $100 million in October 2009. It's a wonder why she hasn't been more patient with the mansion and its 23,538-square-feet, eight-bedrooms and 13 baths. She recently reduced the price to $48 million after less than a year.

Gallery: Patricia Kluge's Albemarle House

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Tell Us Everything, Winemaker Patricia Kluge

by Carrie N. Culpepper (RSS feed) —

Filed under: Wine, Tell Us Everything

Patricia Kluge, 61, is probably best known as the former wife of Metromedia billionaire John Kluge, although their divorce happened nearly 20 years ago. It takes a while for folks to forget about that much money. In the 1990s they were said to be the wealthiest couple in America known for their lavish parties and high-profile friends like Malcolm Forbes, Frank Sinatra and Katherine Graham. But more recently the English-Iranian Kluge has put her fortune to work.

Ten years ago she began planting grapes on her 1,800 acres of rolling Albemarle County, Virginia property - one of the most enviable plots of land in all of Virginia. Her ambition was to become the most prestigious winery on the East Coast and with advice from Robert Mondavi, top wine consultants from France and a state-of-the-art winery, she's getting there. Her wines, which sometimes seem a bit ambitiously priced, have done well in competitions (especially the Blanc de Blancs sparkling Chardonnay and sparkling rosé), are now available in 16 states and China, and she has one of the most lovely tasting rooms in the area.

Most recently in the news for putting her 25,000-square-foot, 45-room estate on the market for $100 million, Kluge and her husband, William Moses, are downsizing, but still keeping 1800 acres and the winery. They had architect David Easton build them a 6,500-square-foot "old Virginia"-style home on another portion of their land which they've designated to be "Vineyard Estates," an über-high-end community of which, they'll be the first residents.

On the 10 anniversary of her Kluge Estates winery, we asked Patricia to tell us everything:

1. What made you want to go into winemaking 10 years ago?

I've always loved wine, particularly the art of pairing wine and food. I'm an avid gardener and consider myself a steward of the land so I was not surprised to learn, when studying my genealogy, that I have farmers in my ancestry. For some time I would look out over the rolling hills and the many acres surrounding my home and felt that creating a vineyard and winemaking operation was a natural choice. I also researched this very thoroughly, studied the soils, consulted with experienced individuals within the industry. Their affirmation of my dream proved that my gut was pointing me in the right direction.

2. For many in Virginia a vineyard is something of a gentleman farmer's pursuit but from the start you have been very serious about making Kluge world-renowned. Did you ever consider just dabbling in it as a hobby?

Although I have hobbies, gardening for instance, I don't do anything halfway. I really throw myself into every endeavor and try to be as educated as possible. So to enter into the wine business with anything less than 100 percent commitment, the utmost passion and excitement never crossed my mind.

3. How close are you to your goal?

The problem with goals is that I keep raising the bar! When we started we had about 30 acres and a handful of varietals. We launched with three wines. Kluge Estate now has over 220 acres under vine, 8 varietals planted and 4 brands. My new goal is to see our wines available in all 50 states.

4. What have you learned in that time about the art/science of winemaking?

In addition to our fabulous vineyard staff and winemakers at Kluge Estate we work with two great consultants from France: Michel Rolland for our red program and Laurent Champs for our sparkling program. Their time in the field and blending in the cellar prove that there is an art and a science to it. There is a saying that anyone can be a cook but a handful of people study and train to become great chefs. There is that difference when working with an experienced winemaking team.

5. What's a common misunderstanding about wine?

I think people can take wine very seriously, to the point where the fun is taken out of it. As a business I do take it seriously but wine is meant to be enjoyed, shared and it can enhance an experience much like music. When I think of a meaningful evening, a great meal or special celebration, there is always wine involved.

Gallery: Kluge Estates Vineyard

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