A mixed-use neighborhood in northwest Bend that has been planned for years is emerging, providing a variety of housing, from low income to vacation rentals.

Discovery West is a 710-unit development by NWX2 LLC, with Brooks Resources as a partner. It includes apartments, single-family cottages, townhomes and retail. The project is less than a half a mile away from NorthWest Crossing.

“Based on our experience with NorthWest Crossing, and given all the amenities it offers nearby, we opted to draft Discovery West’s core with a more neighborly feel with the community plaza and a small-scale retail component,” said Kirk Schueler, Brooks Resources president and CEO.

The project is among several developments in the region designed to stem the housing shortage in Bend and offers a variety of housing needs from cottages to townhomes and vacation rentals that feature hot tubs and private barbecues.

Housing has become a big concern for residents who face an ever-increasing median sales price and a limited supply. Economists say high housing costs hurt residents because people pay an ever-growing portion of their incomes on rents or mortgages.

Schueler said about 8% of the housing in Discovery West will be affordable, including about 60 income-restricted, multifamily units that affordable housing developers will build across from Discovery Park. The city’s development code requires a minimum of 12 affordable homes, according to the Discovery West website.

Vacation rentals

Discovery West is anchored by Discovery Corner, which is at the intersection of NW Ochoa Drive and NW Skyline Ranch Road. Schueler said it’s more like a plaza, a place for people to gather. The plaza will be jointly owned by the property owners in Discovery West, Schueler said. The short-term vacation rentals are built around the Discovery Corner.

“Discovery West is no exception to (the developers’) thoughtful approach in creating a walkable cottage community, leaning more towards the luxury buyers looking for the convenience of Bend’s west-side recreation amenities, low maintenance landscaping, stunning architecture, efficient floor plans and attractive local retail establishments,” said Matt Robinson, managing partner of The Agency, a Bend real estate company.

A dozen vacation rentals have been completed and will rent for about $300-plus a night. They are on the second and third floors of the buildings at Discovery Corner. When Brooks Resources was seeking city approval for the master plan, it sought exemption for the rule that restricts the number of vacation units in a specific radius, Schueler said.

“The option to have overnight rentals helped with the financing and the construction,” Schueler said. “We thought there was a viable market.”

Since becoming available for rent, the units have been met with a good response, said Sean Breuner, CEO and founder of AvantStay, a vacation rental management company.

“We’re inspired by the enthusiasm that (it) has already sparked among both Bend locals and travelers alike,” Breuner said. “We’re eager to bring our world-class guest experience, from concierge services to upscale amenities, to these townhomes.”

Vacation rental transient room taxes brought in $14.8 million to city coffers last year, according to the city of Bend. About $9 million went to the city’s general fund, nearly $300,000 to fire and emergency services and $5 million was reinvested in tourism promotion, according to city records.

There are 1,259 short-term rentals licensed in Bend, but many more can be found on vacation rental websites.

Mixing retail with residential, even short term, can provide a community feel. At Aerie, the name of the vacation rentals at Discovery West, there is a retail component. Already six businesses have signed leases, Schueler said. Scheduled to open in 2025 are Bend’s famous Sparrow Bakery that will have a grab-and-go version in the new retail space, Bluebird Skin Therapy and Aesthetics, and Put a Cork in It wine bar.

Harcourts The Garner Group Real Estate and Greg Welch Construction are already open. Three retail spaces are available for lease, Schueler said.

The vacation units are above in two- and three-bedroom units. Residents in NorthWest Crossing had said in feedback to Brooks Resources that they wanted short-term vacation rentals for family and friends, Schueler said.

The units are being marketed by AvantStay and the average nightly rate is about $300. Eight more vacation rental units are expected to come online this month, bringing the total vacation rentals to 20.

Going forward

The project is about halfway finished, Schueler said. The entire 18-phase project, with its walking paths, mixed housing sites, shopping and park areas, could be completed as early as 2029.

“We’re about halfway through the project,” Schueler said. “Before we can continue, we have to complete the roundabout at Skyline Road and Skyline Ranch Road. Our plans are to build that next summer.”