Traverse City, Mich. -- Michigan's first open-market winery sale is expected imminently, with an auction deadline set for one winery and offers pending on two others, all on the Leelanau Peninsula, Michigan's equivalent of the Napa Valley.
Dan Matthies of Peninsula Properties, a Leelanau real estate brokerage specializing in vineyards and wineries, said he has written offers on Willow Vineyard and Bel Lago, both boutique operations. Matthies was also listing agent for Bel Lago, priced at $3.95 million. Willow was listed at a local agency for $2.35 million.
A third winery, Chateau de Leelanau, is now on a local auction block, with a suggested starting bid of $3.5 million. Earlier this year Matthies had it listed for $4.2 million. Bids are being accepted through Sept. 30, said Dennis Kubesh, president and chief auctioneer of Century Asset Management in Leelanau County.
Since no winery has sold publicly since winemaking took root in this historically cherry-growing region in the early 1970s, the first to sell will establish a benchmark value for the growing industry. "It could be the most important thing that has ever happened to vineyard property and wineries in the Midwest," said Matthies, who also owns Chateau Fontaine in Leelanau County.
Chateau de Leelanau
It's been a hot topic in the tightly knit Northwest Michigan wine community since all three went on the market earlier this year. All are profitable, according to Matthies, who's shown all three, and personal circumstances prompted each for-sale sign.
Kubesh said he's currently working with prospective buyers from Ohio and Illinois who are new to the wine industry, as well as buyers from New York and New Mexico who already operate wineries and are looking at Chateau de Leelanau as an additional production site.
"The response has been relatively positive, although nobody has at this point stepped up to the plate," Kubesh said. "They are doing their homework." He hopes to receive initial bids by Sept. 1w.
The wineries being sold are:
Bel Lago
- Bel Lago: Includes 90 acres of which more than 30 are planted, the first in 1987. An established brand and the most critically acclaimed of the three. Proprietor/winemaker Charles Edson produces about 5,000 cases annually. At the Michigan Wine & Spirits competition earlier this month, Bel Lago garnered three gold, three silver and three bronze medals for its wines, including red, white, and sparkling varieties. Beyond its home state, Bel Lago has taken home two golds from the Riverside International Wine Competition in California
- Chateau de Leelanau: Planted its first vines in 1992 and bottled its first vintage in 1999. Currently, 27 acres are planted with another 30 cleared for planting. The property includes 102 total acres. At the 2007 Michigan Wine & Spirits competition earlier this month, the winery won a silver and two bronzes for three different white varietals. Annual production is about 4,800 cases and winemaking is provided by an off-site consultant. Two tasting rooms are also located in off-site leased facilities.
- Willow: Neighbor to Chateau de Leelanau, it's the smallest of the three. The asking price includes 12 acres (7.5 of which are planted in grapes), a small house, tasting room and winery. Annual production is about 1,200 cases. Willow won a bronze medal for its 2006 Pinot Noir at the recent Michigan Wine and Spirit competition.
Willow Vineyard
The Leelanau Peninsula is home to 15 wineries with three more scheduled to open this year, making the county Michigan's most concentrated wine production region. Neighboring Old Mission Peninsula has an additional half-dozen wineries and a seventh scheduled to make its first wines this fall. Together Leelanau and Old Mission form the northwest region of Michigan's wine industry, with nearly half the state's 50 wineries.
