Saturday, October 30, 2010

Kluge Estate Winery Faces Foreclosure Auctions Totalling $35 Million As Lenders Take Control of Business, Seize Property

c-ville broke the story about Albemarle County's largest winery, owned by millionaire Patricia Kluge and husband Bill Moses.  The 220 acre operation has been open since 1999. 

In response to requests for comment from c-ville's editor, Kluge CEO Bill Moses called it a "perfect storm" of economic collapse and went on to say
"We have been, and are continuing intense discussions with various potential partners....From our perspective, it is disappointing that at the very moment when these talks appear to be most productive, [the banks] have chosen to take the initial steps towards dismantling the winery as an operating business as well as an auction of the property."
The Hook details the millions in loans taken from various creditors during 2007 and 2009, with the Vineyard and various contents as collateral:
"The latest foreclosure notice claims a total debt of $34,785,000 and lists assets of the Kluge Estate Winery and Vineyards to be auctioned off, including 907 acres in southern Albemarle, 164 of which are vineyards.  The sale would also include the well-known Farm Shop and tasting room, as well as offices, production buildings, six employee houses, and a 34,000 square foot former carriage museum."
The auctions aren't scheduled until December; Kluge and Moses have several weeks to cure the debts.

Read at c-ville.
Read at The Hook. 

Last February, the duo faced a foreclosure auction on a house at their planned, but primarily unbuilt, development Vineyard Estates, but bought back the parcel (co-owned by other investors) at auction.  Mrs. Kluge's primary residence Albemarle House was listed for $100M last year; the February price reduction of $52M was national real estate news.  This past summer, the contents of Albemarle House were auctioned, fetching about $20M.  At its current asking price of $48M, Albemarle House has not sold.

No comments: