Real Estate Beat: Donald Trump buys Kluge winery for $6.2 million
April 12, 2011
In December last year, Kluge Estate Winery and Vineyard failed to sell at an auction with bidders unwilling to top the Farm Credit Bank's opening bid of $19 million. But now, the award-winning Kluge
Estate Winery and Vineyard in Charlottesville, Virginia
has been bought by real estate mogul Donald Trump
and Virginia-based Virginia real estate developer Sal Cangiano at a foreclosure auction for US $7.3 million. Before the recession, the property was estimated to be worth more than $70 million.
Trump’s representatives bid $6.21 million
for two parcels, which included the 129-acre tract with vineyards and the winery, and the largest 647-acre tract with vineyards, the auction pavilion, office and the carriage museum. On the other hand, Cangiano grabbed the six-acre parcel containing the Farm Shop for $420,000, a 92-acre parcel for $250,000 and a 21-acre tract for $450,000.
Caley King Newberry, communications manager at J.P. King Auction Company, said…
It was a multi-part auction so we sold all of the tracts in a first part. Sal ended up buying all of the tracts in that round of bidding. Then we went into a Round Two of bidding, where you can take any combination of any of those tracts and put them together and as long as you raise the bid price by 5%, that bidding is reopened. This is where Trump's people came in.
Trump representative Jason Greenblatt said…
We plan on using it as a vineyard. Everything he makes is super-luxury, and this wine is.
On the sale of Kluge Estate Winery and Vineyard, its previous owner and longtime friend of Donald Trump, Patricia Kluge said…
My worst nightmare and personal Armageddon are finally over. I'm thrilled beyond belief. Now finally I can relax, take a week off, and go on vacation.
Patricia Kluge, ex-wife of late media billionaire John Kluge, also named the richest man in America by Forbes in 1987, was forced to sell the winery due to financial problems. She lost Kluge Estates in foreclosure to Farm Creditor of Virginia
Bill Moses, former Kluge Estate CEO and spouse of Patricia Kluge, was present at the auction. He cited…
We're very pleased because we know Donald is interested in bringing back the quality and making it a world-class winery. We're very gratified and we hope to work with him.
Donald Trump told The Washington Post
I’m really interested in good real estate, not so much in wine. This place had a $28 million mortgage on it, and I bought it for $6.2 million.
Founded in 1999, Kluge Estate Winery and Vineyard is is located in the foothills of the Blue Ridge Mountains, near Thomas Jefferson’s historic home Monticello. Kluge’s sparkling wines - the SP Blanc de Blancs and SP Rosé – have the honor of being served at Chelsea Clinton’s wedding in 2010.