“Resorts in northern Minnesota are on fire, lake homes are on fire, real estate is on fire,” said Ely-based Daniel Houle, owner at Minnesota North Ltd. and associate broker with Minnesota Resort Sales.

That demand, coupled with longtime owners putting landmark properties on the market, has resulted in another strong year for resort sales.

Most buyers and sellers don’t report the price for their operations, but most real estate sales are public record, giving some measure of the deals.

The price for the real estate in one landmark sale remains under wraps, however.

Dennis Rysdahl, who co-founded The Bluefin Bay Family of Resorts in Tofte in 1984, has sold them to Joe Swanson and Pipasu Soni, operating as BFB LLC, according to a press release.

The sale, announced July 2, included Bluefin Bay and nearby properties Surfside and Temperance Landing, which offer a mix of condos, suites, guest rooms and townhomes along Lake Superior. The resorts have a total capacity of 235 bedrooms and 634 guests.

The largest reported resort sale this year — and what is believed to be the largest in state history — is the nearly $15 million deal closed by the Ontario-based mother-and-son team of Bryce and Sheila Campbell of North Shore Resort Co.

The Campbells kicked off the year with their Jan. 1 acquisition of Superior Shores in Two Harbors from longtime owner Joe Re. The 30-acre resort on Lake Superior, north of Duluth, includes an event center with a capacity of 300, as well as hotel rooms, restaurants and 184 condo units, 53 privately owned. The Campbells, who also own hotels in Ontario, bought Lutsen Resort in 2018.

By comparison, the biggest sale in 2019 was a $21 million portfolio of six resorts in northern Minnesota.

Frank Jermusek is president, managing director, and owner of SVN | Northco in St. Louis Park. Jermusek, a national expert on golf and resort properties, brokered that portfolio as well as the Bluefin and Superior Shores sales, among others.

“Traditional hotels and event centers are struggling and won’t really recover until COVID is over and people start getting back to normal routines,” he said.

“Golf courses, ski hills, drivable resorts are all doing very well,” he said. “Some are having record years. People want to go to places that have things to do — especially outside things to do.”

Houle explained that internet service in resort areas has expanded opportunities to work and learn remotely in even the most rustic homes and cabins, with lakes and woods as backyards.

Technology also has changed the dynamics of small resort sales. Couples usually buy in their 40s and 50s and sell 20 years later to new couples.  However, the internet has allowed buyers to bring their work with them, letting them live their dreams sooner — and increasing options for sellers.

As Finance & Commerce has reported, the trend has had an impact in residential real estate sales in rural communities as people turn second homes into year-round residences.

“There has also been a huge increase in demand to buy cabins, townhomes and condo units at resorts,” Jermusek said. “We are seeing that trend nationally — people moving out of big cities into some of these highly desirable vacation areas.”

Now brokers are faced with an unusual problem, Houle said.

“They’re out of inventory,” he said.

Top resort sales of 2020  (Prices include real estate, furniture and equipment. Operations costs are not available, except where noted.)

1. $14,560,000, Superior Shores, 1521 Superior Shores Drive, Two Harbors

The sale, announced as $15 million, includes four real estate transactions by buyers Bryce Campbell and his mother, Sheila, of North Shore Resort Company, who own Lutsen Resort on Lake Superior and two resorts in Ontario. The sale includes 30 acres on Lake Superior, 131 of 184 units in the lodge, lake homes and Burlington Bay condo development, Kamloops bar and restaurant, four pools, and an event center with capacity of 280. Remaining condo units are privately owned condos.

Closed: 1-2-20

2. $5.95 million Ruttger’s Bay Lodge, multiple addresses, Deerwood

The year-round resort, owned by the Ruttger family for more than 120 years, sold to 1898 Investments, a Minnesota-based company. The resort includes a 161-room lodge, 500 acres of land, two golf courses, restaurants and bars.

Closed: 9-2-20

3. $4.1 million, Kohl’s Resort, 15707 Big Turtle Drive NE, Bemidji

Putnam Enterprises LLC of Bemidji bought the property from Jade Enterprises of Bemidji LLC of Wisconsin Dells, Wisconsin. The year-round resort includes two dozen cabins on 19 acres on the eastern shore of Big Turtle Lake.

Closed: 5-27-20

4. $3.26 million, Horseshoe Bay Lodge, 8098 Hawthorn Trail NW, Walker

CMerch LLC of Walker acquired the resort from Anderson’s Horseshoe Bay LLC of Walker. The property includes an event center and accommodations for up to 300, a restaurant and bar, a pool, 40 acres, and 2,600 feet of sand beaches.

Closed: 1-22-20

5. $3.25 million, Agency Bay Lodge, 8491 Onigum Road NW, Walker

Robert and Jennifer Weeks of Boise, Idaho, bought the resort from Ronald and Sharon Palmer, who have moved to Florida. The seasonal resort on Leech Lake includes 11 cabins, a 50-site RV park, a lodge and an owner’s home.

Closed: 10-15-20

6. $3 million, Lakewood Lodge, 53026 County Road 35, Deer River 

Longtime owners Stephen and Danielle Casselman have sold Lakewood Lodgein Deer River to Amy and Preston Osborne, a Colorado couple returning to familiar territory. The year-round resort on 15.5 acres along Sand Lake includes a main lodge, 14 cabins, a playground, guest laundry, two fish cleaning buildings, new docks and boat rentals.

Closed: 11-3-20 

7. $2.425 million, Ash-Ka-Nam Resort, 10209 Ash River Trail, Orr

Longtime owners Mark and Lynette Hraban have sold to local buyers Judd and Michelle Sturm of Kabetogama. The year-round resort, built in 1950 on 6 acres at the junction of the Ash River and Kabetogama and Namakan lakes, includes the lodge, condos, cabins and log homes that can sleep 10 people.

Closed: 11-12-20

8. $2.35 million, Pimushe Resort, 7376 Pimushe Trail NE, Bemidji

Edward and Joanne Fussy sold their resort to Chase-Norris Properties LLC of Bemidji.

The resort includes 12 cabins and beach on Pimushe Lake.

Closed: 3-2-20

9. $1.85 million, Everett Bay Lodge, 1820 Everett Bay Road, Tower

Vermilion Ventures Properties LLC, an entity related to Darrell and Debbie Hoffman of Maple Grove, bought the resort from Gooden Properties LLC, an entity related to longtime owners Dave and Diane Gooden.

This seasonal resort has 10 cabins, located along Lake Vermilion.

Closed: 3-27-20

10. $1.7 million, Northern Lights Resort, 35387 Northern Lights Trail, Richville

Seaton Resorts Inc. of Richville bought this resort from Pro’s Properties LLC in Osage. The property includes 10 cabins, eight transient campsites and 11 seasonal sites, on 7.48 acres on Dead Lake.

Closed: 1-7-2020

To see the original post and more business stories, follow this link to the Finance and Commerce website.  https://finance-commerce.com/2020/12/resort-sales-on-fire-in-2020/