Billionaires do it bigger
Almost 10-years-ago, in 2004, billionaire time share mogul David Siegel and his wife Jackie decided to build the largest single-family home in the United States.
They called it the Versailles house
The house would be 90,000 square feet. The design required $5M in marble alone. The wood for the doors was sourced from some of the world’s last bundles of Brazilian mahogany. Cutting down the rainforest to build the biggest house in the country?
Welcome to the wild and wacky world of the Siegels!
The Siegel’s home is modest compared to the actual Palace of Versailles, the construction of which nearly bankrupted the country of France during the 17th century. David and Jackie Siegel would have done well to take notes on the history of France!
Say hello to Mr. Recession, David
In an interview with CNBC, David Siegel remarked that “in 2008 when Lehman went under we were fat, dumb, and happy.” Siegel’s company, Westgate Resorts, was borrowing money and expanding like gangbusters. What they neglected to notice was that demand for their product was plummeting as the Great Recession grew legs and eventually stomped all over the Siegel’s American Dream.
Construction grinds to a halt
Sales at Westgate Resorts, one of the largest time-share companies in the world, plummeted. Siegel had taken his eye off of the ball and failed to anticipate what has been called “the most anticipated surprise in financial history.” Bills went unpaid. Billionaire bills. It was the story of nearly every American’s life—but played out on a grander, more expensive scale.
And then they made a movie
If you haven’t seen it yet, the 2012 film The Queen of Versailles is worth watching. The film chronicles the Siegel family’s troubles as the family patriarch, David, works triple-overtime to save his company. Jackie nourishes her eight children with suitcase-sized bags of McDonalds cheeseburgers. There’s a scene in the movie where David Siegel successfully negotiates a deal to buy back his own debt for pennies on the dollar. About the film, The Economist surmised that “the film’s greatest achievement is that it invites both compassion and Schadenfreude.”
For the record, the Siegels didn’t make the movie themselves. And to add insult to injury, David sued the production company for defamation after the film was released.
And they’re back: The Siegel’s Versailles house will be finished in 2015
Call it a leading indicator. Call it evidence the economy is back. If The Queen of Versailles taught us anything, it’s that the rich can get poorer. And sometimes their lives look just like ours–McDonald’s cheeseburgers and all. But life is getting better for everyone, including the Siegels. They plan to finish their dream home in 2015, largely because David Siegel’s company, Westgate Resorts, is doing better than it ever has. According to the CNBC interview, sales are up a remarkable 50% year-over-year, Westgate is hiring again, and they’re operating with their own money instead of mountains of debt.
Feelings of Schadenfreude aside, that’s something that’s worth smiling about.
Kamiel Moore is a real estate expert who writes for HomeVestors Inc. She loves cupcake shops, reality TV, and using her passport when she goes on vacation.