An Ontario waterfront property with 12 buildings is selling for under $2.5M

You could buy an Ontario cottage for $2.4 million. Or you could buy a property with 10.88 acres, 1,200 feet of waterfront, 12 buildings, seven guest suites, a bar, and enough development potential for up to 30 cabins.

1326 Kawagama Lake Rd., located just outside Dorset, is currently being listed by Sam Kamra at RE/MAX Millennium Real Estate for $2,399,900 — and let's just say it's not your average Muskoka listing.

The property was historically home to Hollow Valley Resort, and offers a brilliant opportunity for anyone looking to enter the world of hospitality.

Aerial view of 1326 Kawagama Lake Rd.

It sits along the Hollow River, with navigable boat access to Lake of Bays, so summers spent out on the water have never been more achievable. Plus, it's only about a 2.5-hour drive from Toronto.

Right on the water!

The main lodge is roughly 4,000 square feet and has been extensively rebuilt from the studs. According to the listing, around $2 million was spent on the renovation in 2022, including new framing, electrical, plumbing, as well as insulation, drywall, woodworking, windows, doors, and a new roof. There's also a fresh board-and-batten exterior. 

Much of the electrical and plumbing infrastructure outside of the main lodge has been redone as well. 

The main lodge.

Inside, the lodge has seven studio suites, each with its own bathroom and mini bar with a fridge, plus a shared kitchen.

The cozy bedroom of one of seven studios.

Then there's the bar lounge, which has ample seating and space, and once hosted live bands on Friday, Saturday, and Sunday nights.

Imagine hosting drinks with family and friends here!

Meanwhile, the lower level is partially finished, with rough-ins that could be turned into a sauna, steam room, gym, or yoga and Pilates studio. Basically, the next owner would get to decide what kind of resort this becomes.

The lower level is partially finished — but it does include a laundry area.

Three cabins sit out front of the property, one of which has already been renovated and is ready to rent. The other two are in older condition but could be fixed up.

One of the three cabins on site is fully renovated and ready to go.

Along the waterfront are another two cottages that are ready to start renting, while several trailer sites have been stripped down and are waiting for either renovations or new prefab cabins.

The land could potentially accommodate up to 30 cabins with further development, meaning there's plenty of room for a much bigger vision here.

If you're an ambitious person, there's tons of potential here.

The property was purchased for $4 million in 2022, and approximately $2 million was subsequently invested into renovations. As mentioned, it is now listed under power of sale by the mortgagee for $2,399,900. That's less than the original cost and cost of renovations!

The potential doesn't stop with the buildings, either. It is surrounded by thousands of acres of Crown land and recreational trails, with plenty of opportunities for outdoor adventures throughout the year. 

Summer on the water? Yes, please!

Summer brings the obvious Muskoka appeal — i.e.,boating, swimming, lounging on the decks. And in winter, the surrounding wilderness and trail network lend themselves to snowmobiling, skiing, snowshoeing, and other cold-weather activities.

The property is zoned C3-3 and already has a large septic system and drilled well. The electrical infrastructure has also already been upgraded between the main lodge and the trailer sites.

Side view of the main lodge.

The original vision was to transform Hollow Valley Resort into a premier five-star destination. Muskoka-Haliburton tourism has been growing steadily, and waterfront properties in the region are sometimes hard to come by. But whoever takes it on now has a pretty massive blank canvas to work with, and can do as they please!

Contact Sam Kamra at RE/MAX Millennium Real Estate to set up a viewing or find out more about 1326 Kawagama Lake Rd.