The Old Mill District, known for shops, galleries and restaurants, is adding apartment rentals to its portfolio.
In September, construction will get underway to prepare the ground for three new buildings at the northern end of the shopping center. Building X will be 8,700 square feet along the riverfront trail, across from Pastini’s, where the bike rental shop used to be. It’s designed to house a single restaurant.
“This will be a restaurant with a spectacular view of the Deschutes and the amphitheater,” Beau Eastes, marketing director for the Old Mill District, told the Source. “We see this concept having not only a great patio along the river trail, but also a rooftop bar/dining area.”
Next to it will be Building Y with 8,695 square feet and room for up to three businesses with a mix of retail and food.
“A smaller food and beverage operation on the western part of the building…could really take advantage of the patio space adjacent to the hot ponds and proximity to the river,” Eastes says. The term “hot pond” is a tribute to the historic past when the area was a sawmill. Water that powered the mills sat in hot ponds to cool off before being returned to the Deschutes River.
Building Z will be built in the parking lot across from Athleta. At 8,742 square feet, it will have one to three shops on the bottom floor with nine furnished one- and two-bedroom apartments on top. Eastes says plans are still being discussed about whether those will be short-term vacation units or include long-term rentals. The apartments will be managed by William Smith Properties which manages the Old Mill District. Eastes says it’s possible that more living space could be added in the future.
Construction is expected to be done on all three buildings simultaneously with the goal of being ready for tenants at the end of 2026. Eastes says the Old Mill has been 100% leased for awhile and the volume of inquiries from potential businesses and their level of seriousness is what gave District managers the confidence to start construction now. It’s the first time new buildings have been added since 2010.
“We’re very intentional about who we lease to, to ensure we have a healthy mix of businesses that benefit the District as a whole,” Eastes says. The mall will lose some parking spots as a result of the new buildings, but Eastes says the parking ratio should still accommodate visitors with nearly 1,900 parking spots.
According to a report done by Placer Labs Inc. from May 2024 to May 2025, 706,000 people came to the Old Mill multiple times for a total of 3.2 million visits. Customers spent an average of 71 minutes at the mall. The most popular business was the Regal Old Mill movie theater with nearly 521,000 visitors. Rounding out the top five are REI with 492,000 shoppers, Red Robin with nearly 310,000 guests, American Eagle Outfitters with 197,000 and Anthony’s restaurant with nearly 161,000 customers. Eastes says about 75% of visitors to the District last year were locals.
Portland-based TVA Architects designed the three new buildings. One of the project goals is to create pedestrian-focused plazas and walkways connecting the businesses. The concept calls for parking spots behind the buildings so it’s less auto-focused. Development is being overseen by River Bend Limited Partnership. During construction, the north loop around the hot ponds will be closed to traffic for a short time. That will be later in the year when the outdoor mall is less busy.
This article appears in Source Weekly July 17, 2025.
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Great build more so that the roads become even more crowded. Wonder why the roundabout at Reed Market is always so backed up. Now it will become worse.
I think a better story would be to ask how Placer Labs came up with their numbers about visitors and shoppers at the Old Mill, and why do we even care or need to know what the numbers are?
This town is so screwed up. We have a serious traffic issue at Reed Market roundabout. So, what does Bend do?! Stuff more development at the center of the issue! Out of control development! Melanie, where are you in all of this? Just like every other City official. You’re in over your head! You’re either in on the take or just plain stupid. Either way, it’s long past time for the community to take a stand! When will this madness stop?