Phelps Bay: Lake Minnetonka Real Estate™

Phelps Bay is a unique and desirable part of Lake Minnetonka, located east of Cook's Bay and indented on its southeast side by Phelps Island. It was named in honor of Edmund Joseph Phelps, a prominent Minneapolis figure born in 1845 near Brecksville, Ohio, who moved to Minnesota in 1878. In 1883, he co-founded the Minneapolis Loan and Trust Company. Phelps Bay offers a rich history and a vibrant community. Its serene environment and proximity to local amenities make it highly appealing to homebuyers, boaters, and outdoor enthusiasts. Nearby cities such as Mound and Spring Park provide convenient access to the bay, offering a blend of small-town charm and modern conveniences.

Why Choose Phelps Bay?  

Scenic Beauty and Lifestyle: Phelps Bay is known for its natural beauty, featuring calm waters and lush surroundings. The bay's tranquil environment is ideal for various recreational activities, including fishing, kayaking, paddleboarding, and boating. The relatively low boat traffic levels enhance the peaceful atmosphere, making it a perfect retreat for those seeking relaxation on the water.  

Prime Location and Accessibility: The bay is easily accessible via major roadways such as Shoreline Drive and County Road 15. Landmarks like Surfside Park and the Mound Depot add to the area's charm, while nearby town centers in Mound and Spring Park offer shopping, dining, and entertainment options.  

Notable Nearby Bays, Islands, and Points: Adjacent to Phelps Bay are several points of interest, including Cook's Bay, Black Lake, and Seton Lake. These neighboring bays provide additional recreational opportunities and scenic vistas, enriching the overall lake experience.  

Water Quality & Clarity  

Phelps Bay maintains good water quality, with clarity levels that support various aquatic activities. The bay's depth and overall cleanliness make it suitable for swimming, boating, and fishing. Local environmental reports and homeowner observations indicate consistent water quality, with ongoing maintenance efforts to preserve its pristine condition. While occasional algae blooms and aquatic plant life are natural occurrences, conservation efforts are in place to manage their impact on water conditions.  

Real Estate on Phelps Bay – What to Expect  

The real estate landscape around Phelps Bay features a variety of homes, including luxury estates, modern lakefront homes, and charming cabins. Desirable property features often include private docks, expansive lakefront patios, wooded lots, and proximity to local amenities. The real estate market in this area is characterized by limited inventory and high demand, with price ranges reflecting the premium nature of lakefront living. For instance, properties have been listed with varying features and price points, catering to diverse buyer preferences.  

Schools and School District  

The Phelps Bay area is served by the Westonka School District, offering quality education to local families. Specific elementary, middle, and high schools serving the area can be identified based on property listings and district boundaries. Notable school rankings, specialized programs, and strong community involvement contribute to the area's appeal for families seeking a nurturing educational environment.  

Buying or Selling on Phelps Bay  

If you're considering buying or selling property on Phelps Bay, now is an excellent time to explore available listings or connect with a trusted local expert to maximize your property's value. Embrace the opportunity to enjoy a serene lakeside lifestyle or to pass on your cherished home to the next appreciative owner.  

Latest listings on Phelps Bay:

$2,349,000
ACTIVE Status ⋅ 5 Beds ⋅ 5 Baths ⋅ 7102679 MLS ⋅ 4,354 SqFt.
Embrace the quintessential Lake Minnetonka lifestyle from this commanding, architecturally impressive lakefront residence. Imagine waking up to spectacular morning sunrises over the water, spending your days cruising the lake, and pulling right back into your private dock with a covered boat slip. The home boasts approximately 86 feet of prime, highly coveted low-to-the-water shoreline, offering effortless, level access to the water for boating, swimming, or winter lake activities. Perfectly situated next to a quiet park, the property enjoys enhanced privacy and an expansive atmosphere that makes the entire lot feel like your own massive lakeside retreat. The sellers have already handled the important, big-ticket maintenance items for you, providing incredible peace of mind so you can focus entirely on enjoying lake life. Capital updates completed in 2025 include a new roof, furnace, central A/C, heat pump, $34,000 landscaped wall, refrigerator, washer, and dryer, and new driveway installed in 2021. Because the major structural and mechanical infrastructure is complete, the interior paint and flooring have been left original, offering a rare opportunity for buyers to bring their custom vision and select their own finishes from day one. Inside, the home is beautifully designed to embrace its stunning waterfront setting. Architectural drama defines the main level, anchored by an impressive two-story vaulted living room where a magnificent wall of windows floods the space with morning light and frames panoramic lake views. The main floor also features a gas fireplace, a lakeside primary suite with a private deck for quiet mornings looking out at the water, and a functional laundry room positioned just off the garage entrance. The second floor includes three bedrooms, a second laundry room, and an open office overlooking the main floor living room. The walkout lower level has heated floors and is built for the ultimate entertainer, stepping directly out to the flat lakeside backyard and the shore. Family-friendly and perfect for hosting friends after a day on the water, this level features a bar, a large game room, and a private fifth bedroom. Bring your boat, your designer, and your vision! Your dream Lake Minnetonka lifestyle starts here at 4531 Island View.

4531 Island View Drive, Mound

Listing courtesy of Douglas Miller.

$1,879,000
ACTIVE Status ⋅ 3 Beds ⋅ 2 Baths ⋅ 7085912 MLS ⋅ 2,212 SqFt.
Situated on a premier almost half acre lot, this recently updated charming walkout rambler offers scenic lake views and 108 feet of shoreline on Phelps Bay of Lake Minnetonka! Sweeping panoramic lake views greet you as you enter the gracious living room and dining room featuring easy access to the back deck. The nicely updated kitchen features white cabinetry, stone granite countertops, stainless appliances and plank wood flooring. Two main floor bedrooms with generous closet spaces and close access to the full bathroom complement the main level. Enjoy the lake view and generously sized deck (43x12) with three convenient access points. The lower level is sure to impress with an expansive family room that includes a gas fireplace with marble brick surround, a perfect entertainment space. The oversized lower-level bedroom includes an ample sized walk-in closet and walkout access to the back patio! A full bathroom, private laundry room and a water treatment system complete the lower level. The backyard has been professionally landscaped and includes a storage shed that has electric and shore power. Additional features include a nicely appointed two car garage, plenty of storage space, dock, and lakeside firepit. Phelps Bay is known for its calm and clear water along with recreational water sports like kayaking, paddleboarding and fishing for bass and walleye. Located in the award-winning Westonka School District.

3590 Tuxedo Road, Minnetrista

Listing courtesy of Coldwell Banker Realty.

$1,345,000
CLOSED Status ⋅ 3 Beds ⋅ 3 Baths ⋅ 7066481 MLS ⋅ 2,370 SqFt.
Set on Phelps Bay in Enchanted Island on Lake Minnetonka, this property features 86 feet of shoreline and a flat lot, framed by mature trees. The setting offers a natural sense of privacy and seclusion while still feeling open and connected to the lake. Tucked into one of the more unique pockets of the lake, it delivers a quiet, established feel that’s hard to find in this area. A rare opportunity for private lake living in a highly sought-after location.

3710 Lee Road, Mound

Listing courtesy of Vector Realty Group.

$1,850,000
ACTIVE Status ⋅ 5 Beds ⋅ 4 Baths ⋅ 7059321 MLS ⋅ 3,153 SqFt.
This property sits on Tuxedo Road, a highly sought-after peninsula on the Lake Minnetonka chain. The lot offers incredible panoramic water views, with exposure to the south and west, plus views toward Phelps Bay to the east. Located near Zimmerman’s Pass and Enchanted Island, one of the larger islands on Lake Minnetonka, the setting is truly special. Set on 0.91 acres with southwest-facing shoreline, the property enjoys exceptional sun exposure throughout the day and stunning sunset views over the water. The lot offers excellent usability for activities, entertaining, and events. The property includes a two-stall detached garage, an additional five-stall pole shed, and a small guest house providing rare flexibility for storage, hobbies, guests, or future use. A standout feature is the grandfathered boathouse, offering storage below with electrical, along with a usable upper-level sitting space also equipped with electricity, an increasingly rare and valuable amenity on Lake Minnetonka. With its expansive views, prime Tuxedo Road location, nearly one-acre setting, functional lot, and versatile outbuildings, this is a truly unique Lake Minnetonka opportunity. Copyright & Use Restriction Notice Exclusively TC Homes Our designs represent the craftsmanship and standards TC Homes is known for. These plans are proprietary and may not be copied or built by others without our written consent. Unauthorized use or reproduction is prohibited.

3625 Tuxedo Road, Minnetrista

Listing courtesy of Keller Williams Classic Realty.

$399,900
ACTIVE Status ⋅ 7044365 MLS
BEST LOTS AVAILABLE AROUND LAKE MINNETONKA! AMAZING 3/4 ACRE WOODED WALK-OUT LOT WITH BREATH-TAKING VIEWS OF LAKE MINNETONKA! Beautiful one of a kind, private building site with panoramic views of a large pond, nature area and Phelps Bay of Lake Minnetonka. (One of two walk-out building sites available) This hidden gem is one of the last large undeveloped parcels left around the lake! Home packages on this lot starting at $1,150k. The property feels like acreage as it sits high out on a peninsula at the end of a private no outlet road. THE PROPERTY INCLUDES 160 FT OF SHORELINE ON THE LARGE POND, WITH A PERMITTED DOCK AND LIMITED DIRECT ACCESS TO LAKE MINNETONKA THROUGH A 13 FT WIDE CHANNEL. The pond is not deep but could accommodate shallow watercraft such as a pontoon, shallow bow outboards and bass boats, kayaks, canoes and wind surfing boards etc., during the summer as well as ice skating and pond hockey in the winter. All of this right at your doorstep, without lake shore taxes! A rare opportunity to build either a glorified cabin or a large custom home with incredible private water views to the east, for sunrises and woods and nature area to the south and lots of wildlife! The pond is an active Eco System with fish, turtles, beavers, ducks & geese and many other birds as well as deer! All right outside your windows. Ask about our bold WATER & WOODS plan with a base price of $1.4M. Ask about $40k of builder credits towards the lot when building with Custom Living Homes, LLC. Experience the quality and expertise of building with CLH, LLC with over 40 yrs of experience in custom home building with the latest in design trends and technology and with the highest quality craftsmanship and attention to details from start to finish! Ask the builder about new w/o Crow River lots available for $195k as well. IF YOU PREFER, YOU CAN BRING YOUR OWN BUILDER. Why settle for outdated design and decor with needed projects when you can have a new custom built home! Select one of our beautiful, well designed home plans, from traditional to modem or contemporary (some with a sport court) that can be customized or we can partner with you to design your dream home that fits perfectly to your wants, life style and budget. The building site is a blank canvas with endless possibilities! The elevated building site can easily accommodate a two story or rambler house plan with a three car garage. As an example, our BIRCHWOOD open concept rambler design offers one level living with all the desired amenities and finishes. With the finished walk-out lower level it provides a total of 3,671sf of quality, design and function. The Birchwood house plan on this lot, has a base price of $1,150,000. Ask the builder about building incentives when building with CLH, LLC. Close to Excelsior and Wayzata, bike trails, parks and shopping along with the award-winning Westonka Schools makes this an ideal location to call home! Make an appointment with the builder now to walk the lots and see the building site. The builder will explain the building process and the different home style options etc., and answer any of your questions, so bring your ideas to get started. The building sites are ready for permitting and all utilities are in. Please do not walk the property without the builder or turn around in the neighbor's driveways. Please use the turn-around area next to the info. box. Thank you!

51XX Waterbury Road, Mound

Listing courtesy of HomeAvenue Inc.

$2,249,000
PENDING Status ⋅ 5 Beds ⋅ 5 Baths ⋅ 7036476 MLS ⋅ 4,425 SqFt.
Wake up to stunning southern-facing views of Phelps Bay and a beautiful hard sand lake bottom perfect for swimming and all your lake activities from this meticulously maintained lakefront home featuring dramatic floor-to-ceiling windows spanning the main level for exceptional lake presence and natural light. Thoughtfully designed for comfortable living, the home offers four bedrooms on one level, along with 10-foot ceilings on the main level and 9-foot ceilings in the lower level, creating a bright and spacious feel throughout. The kitchen has been recently updated with new Cambria countertops and backsplash, blending style and functionality. Outdoor living shines with a new expansive Azek deck featuring a retractable-top pergola and natural gas hookups for a grill and fire table, perfect for lakeside entertaining. Lakeside landscaping and retaining wall installed in 2021 include Azek steps leading down to the lake, complemented by professional landscape lighting and irrigation. The property also features a walkout to a rare flat lakeside lawn ideal for summer games and gatherings, along with excellent privacy on both sides from fencing and mature arborvitaes. Large flat rip rap installed in 2018 provides durable and attractive shoreline protection. Additional highlights include a finished and heated three-car garage with mezzanine storage, 50-amp hookup for Level II EV charging, whole-house central vacuum with a brand new vacuum unit, and a new paver driveway installed in 2025. The home also features geothermal heating and cooling for efficient year-round comfort along with lower-level radiant floor heating for cozy Minnesota winters. Enjoy morning coffee or evening sunsets from the primary bedroom’s private balcony overlooking the lake. Conveniently located near the The Shoreline Hotel and within walking distance to Al and Alma's Supper Club & Charter Cruises for dining and lakeside entertainment. Located in the award-winning Westonka School District. The property also offers the unique opportunity for a large additional storage garage and rental house located across the street. Ask your agent for additional details.

4743 Island View Drive, Mound

Listing courtesy of Bridge Realty, LLC.

$849,000
ACTIVE Status ⋅ 7032003 MLS
Rare opportunity to build your dream luxury lakeshore home on sought-after Phelps Bay on Lake Minnetonka. This .18-acre lot features 80 feet of south-facing shoreline with stunning lake views. Dock allowed and city sewer and water available. Existing structure on site offers a prime teardown opportunity for new construction. Enjoy the perfect location on Lake Minnetonka with easy boating access to the lake’s many popular waterfront restaurants and destinations. Mature trees, wide lot, and beautiful water views create the ideal setting for your custom lakeshore retreat. Exceptional chance to secure a premium homesite on Minnesota's most desirable lake.

4877 Island View Drive, Mound

Listing courtesy of RE/MAX HomeMasters.

$1,199,000
ACTIVE Status ⋅ 4 Beds ⋅ 4 Baths ⋅ 7020504 MLS ⋅ 3,810 SqFt.
BEST LOTS AVAILABLE AROUND LAKE MINNETONKA! BEAUTIFUL CUSTOM ONE-LEVEL LIVING WALK-OUT RAMBLER SET ON A RARE AND PRIVATE ¾ ACRE WOODED BUILDING SITE WITH PANORAMIC VIEWS OF WATER, WOODS, AND NATURAL BEAUTY! IT INCLUDES LONG VIEWS OF PHELPS BAY OF LAKE MINNETONKA. The property feels like acreage as it sits up high out on a peninsula at the end of a no outlet road. A fantastic opportunity to build a custom home on an amazing property! THE SITE FEATURES 160 FEET OF SHORELINE ON A LARGE SCENIC POND WITH A PERMITTED DOCK AND LIMITED DIRECT ACCESS TO LAKE MINNETONKA VIA A 13 FT WIDE CHANNEL- all without lake shore taxes! The pond is not deep but could accommodate smaller craft such as a pontoon, shallow bow outboards, bass boats, kayaks, or canoes. The peaceful and natural setting offers a nice mix of both water and woods surrounded by mature maple and oak trees which assures lush privacy in the summer, blazing colors in the fall and serene winter landscapes. Trim back some trees for unobstructed water views and amazing sunrises over the pond from your new home! The pond is an active Eco System with fish, turtles, beavers, ducks & geese and other birds as well as deer right outside your windows. Ask about our bold WATER & WOODS plan, with a base price of $1.4M. Presenting our BIRCHWOOD open concept rambler design which is fully customizable and takes full advantage of this truly special and scenic building site. See attached photos of a similar home we built and the beautiful building site! The interior features the beauty of nature, timeless craftsmanship w/the perfect balance of enameled and natural woodwork, tile, and stone! Custom cabinetry & mill work, wide plank floors with quality finishes throughout. Main level living features high ceilings and walls of windows with amazing views. Convenient office with barn door, wainscoting walls & built-in shelves; light filled great room with beam ceiling, large windows, and stone FP with built-ins. Centerpiece gourmet kitchen features everything expected with large center island, granite, and SS appliances and includes a desirable prep pantry. Inviting sun room has vaulted ceiling with beams, lots of windows for views of the woods and water, including a stone FP that opens to a large deck for outdoor living space. Luxurious primary suite with private views features spa-like bath with ceramic tile, heated floor, walk-in shower, freestanding tub, separate vanities and his and her closets with laundry. The LL is designed for health, relaxation, and entertainment. Large family room with FP, room for big screen TV, pool table area, full wet bar, two additional bedrooms and two baths and a flex/exercise room which leads to an opt. patio/hot tub area to enjoy. Mechanical room with storage completes the lower level; 3 car garage & landscape package. Truly a high quality, custom home! If the BIRCHWOOD plan does not meet your needs, select one of our other beautiful, well-designed home plans from traditional to cottage style or contemporary that can be customized or we can partner with you to design your dream home that fits perfectly to your wants, lifestyle and budget! Collaborate with our designer to select the finishes and colors to make this home truly yours! Experience the quality and expertise of building with Custom Living Homes LLC with over 40 yrs of experience in custom home building. Close to lakes & parks and shopping. Convenient to Excelsior and Wayzata. Award winning Westonka Schools! The building site is ready for permitting and all utilities are in. Make an appointment with the builder now to walk the lots to see the beautiful views, secure the building site and do design and budget work for starting construction! Contact the builder for further details. The existing home next door at 5123 Waterbury Rd. to be removed. Please do not walk the property without the Please use turn around area next to the info box. Thank you!

51XX Waterbury Road, Mound

Listing courtesy of HomeAvenue Inc.

$2,657,000
CLOSED Status ⋅ 4 Beds ⋅ 4 Baths ⋅ 7011537 MLS ⋅ 4,908 SqFt.
Lake Minnetonka Lakeshore! Artisan-style home featuring open, light-filled design with a blend of natural elements including, wood, tile and stone. Modern living with two main floor bedroom suites, great room with wall of windows, hardwood floors and two-sided fireplace. Step out to the lakeside porch and deck and enjoy the panoramic views of the lake. Escape to the upper-level den/retreat space with private deck. Entertain in style in the walkout lower level featuring family room, bar/party kitchen and two additional bedrooms and baths. Level lakeside yard with firepit, boathouse/studio and over 100 feet of sandy lakeshore with miles of Upper Lake views. Prime location minutes to restaurants, parks, trails, and shopping. Award-winning Westonka Schools.

3600 Tuxedo Road, Minnetrista

Listing courtesy of Coldwell Banker Realty.

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