Rum River Estates Moving Forward

It seems everything in real estate is about niche marketing these days around Mille Lacs. There are high-end niches, mid-level niches and what Jim McCrank calls “an affordable niche for baby boomers in an economy gone south.”

Welcome to Rum River Estates, located 8 miles south of Onamia on Highway 169 on the east side of the road. If you have traveled up to Mille Lacs much on this route, you’ve seen the signs, eight tenths of a mile of mowed berm, the old caboose and piles of dirt, rock with some heavy equipment co-located with a pair of park model homes.

McCrank is the sales and marketing director for the project. Investors Dan Diebold, Johnny Diebold and Mary Ann Law are putting the overall development package together on the 126-acre former Blossom Run Site.

The 49-site Rum River Estates will boast a 33,000 square-foot “Grand Log Lodge” and the resort units will be priced from $50,000 to $78,000, catering to another price niche around Lake Mille Lacs. McCrank said his group expects to break ground in April on the lodge, which will sport 12 hotel suites, a wading pool, recreation center, main hall that seats 350 people, lounge with flat screen TVs and kitchen facility along with steam rooms.
The project was delayed, McCrank said, due to the economy but plans are to get things moving this spring. McCrank said the price tag on the lodge is $4.3 million and it’s being built by Eagle Log Homes of Wisconsin Rapids. There will also be garage and storage available to owners.

“We’re tearing out all the old septic and all the buildings are being demolished,” McCrank said. “Dan Diebold is a former University of Minnesota real estate professor and we felt last spring and summer was not the proper time to push forward on the development, hoping the market does recover.”
Each park model home, which is about 400 square feet, will sit on a 4000-6000 square-foot landscaped lot. The property is adjacent to the Rum River. The development will have public gazebos along the river.

McCrank said the development will cater to families and retirees, becoming a vacation facility with some pull-through accommodations. The development will feature Stone Canyon Park Model Homes, which are sided cabins that meet RV living space standards. I toured one Monday and it was decked out with granite counter tops, energy efficient windows, a screened-in porch, slate floor and stainless appliances.

It was cozy and very nice. Each unit also will have 100 amp service. McCrank is positive about the future: “Things are contingent somewhat on the recovery of our economy,” he said. “These baby boomers who lost 25-50 percent of their retirements want to have a vacation place but can’t afford the huge financial burden of $250,000-300,000 homes.