The 158-unit Willow apartment complex on Meadows Road in Lake Oswego sold for $66 million, marking the first change of hands for the luxury complex since it opened in 2024.

Shorenstein Properties, which built the complex at 5600 Meadows Road, sold to New York-based Sentinel Real Estate, according to Clackamas County property records. The price works out to roughly $417,700 per unit.

"Our investment in Willow further strengthens Lake Oswego's vibrant mixed-use environment," Shorenstein managing director Jed Brush said in a press release reported by the Lake Oswego Review. "We have seen that thesis play out as the submarket has attracted corporate investment from new employers relocating to Lake Oswego over the last five years."

The Willow sale was part of a larger Pacific Coast acquisition by Sentinel, which simultaneously purchased the 293-unit Talavera Apartments in Folsom, California, for $102.5 million, bringing the combined deal to $168 million. Sentinel manages $9.8 billion in real estate assets on behalf of 116 institutional clients and holds nearly 29,000 apartment units nationwide.

Willow offers one-, two- and three-bedroom units with amenities including work-from-home rooms, an outdoor skydeck, a fitness center, below-level parking and electric vehicle chargers. The complex sits in the Lake Forest neighborhood near Lake Grove Plaza, Bridgeport Village and major employers including Providence and OHSU.

Shorenstein's broader Kruse Way bet

The sale comes as Shorenstein's affiliated entity, Kruse Way LLC, pushes ahead with a separate office-to-housing conversion in the same corridor. The Lake Oswego City Council approved rezoning nearly 13 acres at 4000 Kruse Way Place from office campus to high-density residential in February.

At that council meeting, Brush argued that suburban mixed-use nodes combining residential, retail and office space "tend to help each other flourish" and called the Kruse Way site "tailor made to help the city meet its housing goals."

The rezoning faces a challenge. Lia Anderson, a member of the Westlake Neighborhood Association and the Westlake Homeowners Association, filed an appeal with the Oregon Land Use Board of Appeals in March, according to the Lake Oswego Review. As of April 30, LUBA had not scheduled a hearing. The appeal's current status is unclear.

Lake Oswego must add approximately 2,000 housing units over the next 20 years to meet state-mandated targets, and the need for medium- and high-density housing outstrips current capacity by about 450 units, according to a city staff report. Mayor Joe Buck said at the February meeting that the city is looking to increase housing supply in commercial areas rather than adding density to residential neighborhoods.

Even if the appeal is resolved in Shorenstein's favor, Kruse Way LLC would still need to submit a separate development application subject to city staff review before any housing could be built at the 4000 Kruse Way Place site.

Sentinel has not announced any changes to management, rents or operations at Willow under new ownership.