kluge

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?

Yesterday, Sotheby's, on behalf of billionaire Patricia Kluge, concluded the two-day auction of the contents of Kluge's home, Albemarle House. The sale, which totaled $15.1 million, exceeded pre-sale expectations of $9 million to $14 million.

Collectors, interior designers, and dealers from all over the world participated in the two-day auction. The auction followed the week-long exhibition at Albemarle House, Kluge's 45-room English country manor. The sale was 88.5% sold by lot with 61.5% of the sold lots achieving prices above their high estimates. The $15.2 million achieved brought Sotheby's overall total for sales of property from Kluge's collection (including sixteen pieces of jewelry sold on April 20, 2010) to $20.2 million.

The highlight of the historic sale---the first on-site house sale conducted by Sotheby's in North America in over 20 years--was a magnificent Chinese Imperial Clock (lot 345). The clock, seen above, sold for a jaw-dropping $3.8 million. Created by the Guangzhou Workshops during the Qing Dynasty (Quianlong Period), it sold for more than three times the high estimate of $1 million. It was the third highest price achieved for a clock of its type. Competition was fierce for the Imperial treasure, with five different clients battling over the telephones. Sotheby's auctioneer Lisa Hubbard opened the bidding at $350,000 and four clients quickly entered the fray. A new bidder jumped into the competition with a bid of $1.2 million, and it was that client who, more than six minutes later, cast the winning bid. Extended applause erupted from the packed salesroom when the hammer was finally brought down. The purchaser was a Chinese private collector.

On June 8th and 9th, Sotheby's, on behalf of billionaire Patricia Kluge, will sell the contents of Kluge's home, Albemarle House, at auction on the grounds of the majestic estate.

Antique lovers and voyeurs alike will be able to step inside Kluge's 45-room estate in Albemarle County, Va., for a peek at what could be theirs. Those who shell out $73 for the impressive auction catalog will gain admission for two to preview the auction items on-site through June 7th.

Ms. Kluge is the former wife of mogul John Kluge, founder of Metromedia Inc., which pioneered independent TV stations operations through the 1960's and 1970's. Kluge became one of the richest Americans after he sold his company to Rupert Murdoch during the mid-1980's for nearly $2 billion. Kluge made a second fortune in telecommunications and he was also a major owner of Orion Pictures. The Kluge's divorced nearly 20 years ago.

Patricia Kluge, who is remarried, is now pursuing a life as a winemaker and philanthropist. She decided it was time to change her lifestyle. As such, she felt it was time to part with both Albemarle, the enormous estate in Charlottesville, Virginia she called home, and its contents.

"For the past three decades, building and maintaining this collection have been among my greatest joys," said Kluge, in an exclusive interview with Luxist's Carrie N. Culpepper in January. "Now, I look forward to sharing this very extraordinary collection with fellow collectors as I focus my energy on my new home, travel and expanding the business of Kluge Estate Winery and Vineyard."

A year ago I wrote about the Vineyard Estates real estate project in Charlottesville, Virginia on the grounds of the Kluge Estate Winery and Vineyard. Vineyard Estates is a joint venture between winemaker Patricia Kluge and First Colony Resorts on 511 acres of the 2,000 acre vineyard property on Carter's Mountain near Monticello. The first house to be built in Vineyard Estates at Kluge Estate Winery and Vineyard is Glen Love Cottage. It is located in Meadow Estates, the first of Vineyard Estates' three phases. The house was created to set the standard for Vineyard Estates. The five-bedroom home has 6500 feet of indoor living space with clean, classic country estate lines. Outside there is a swimming pool, covered porch, formal flower gardens and a half-acre vineyard. It is listed at $6.8 million.
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